1. The prize in last week's lottery was estimated to be worth $35 million. If you were lucky enough to win, the payment will be $1.75 million per year over the next 20 years. Assume that the first installment is received immediately.

a) If interest rates are 8%, what is the present value of the prize?

b) If interest rates are 8%, what is the future value after 20 years?

c) How would your answers change if the payments were received at the end of each year?