Value of an annuity versus a single amount Personal Finance Problem Assume that you just won the state lottery. Your prize can be taken either in the form of $55,000 at the end of each of the next 20 years that is. $1,100,000 over 20 years) or as a single amount of $529,000 paid immediately a. If you expect to earn 9% annually on your investments over the next 20 years, ignoring taxes and other considerations, which womalive should you take? Why? b. Would your decision in part a change if you could eam 11% rather than 0% on your investments over the next 20 years? Why? c. At approximately what interest rate would you be indifferent between the two options? if you take the prize as an arvuty, the present value of the 20-year ordinary anuity is $ (Round to the nearest cant) if you take the price as a single amount, the present value of the lump sum is $. (Round to the nearest dofar) Which alternative should be chosen? (Select the best answer below) Annual payments, because the present value se is greater O Lumpsum, because the present value is greater b. If you earned 11 rather than 9% on your investments, the present value of the 20-year ordinary annuity is $(Round to the nearest cont.) Which alternative should be chosen? (Select the best answer below) O Annual payments, because the present value is greater Lump sum, because the present value is greater