Time Value of Money - Annuities A. You just won the lottery for $50 million. You have the option to receive $2.5 million at the beginning of each year for twenty years or take a lump sum today for $32 million. Assume a 5 percent interest rate is used to evaluate this decision. Ignoring taxes, what should you do if you want to receive the most money? Explain. B. You want to retire at the age of 65 . You plan on living to 95 years old. Your goal is to withdraw $80,000 at the beginning of each year in retirement. How much money must you have in your account when you reach 65 years old if your account earns 7% annually? C. Referring to part B above, if you are currently 33 years old, how much must you invest at the end of each year for the next 32 years to have the amount necessary in your account by the age of 65