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 $49,000 at the end of each of the next 25 years (that is, $1,225,000 over 25 years) or as a single amount of $617,000 paid immediately lttery Your priecan $1225000over 25 years or as asing you expecttobe abletoean8%annually on at a f you expect to be able to earn 8% annually on your investments over the next 25 years, ignoring taxes and other considerations, which alternative should you take? Why? b. Would your decision in part a change if you could earn 10% rather than 8% on your investments over the next 25 years? Why? c. On a strictly economic basis, at approximately what earnings rate would you be indifferent between the two plans