You just won the lottery and will receive 20 annual $100,000 payments, starting today and at the beginning of the next 20 years. Instead, you could take one lump sum today. If the appropriate interest rate is 8%, how large should the lump sum be? You are indifferent when the two options have the same PVs. Enter the data into your calculator: N = 20 I/YR = 8 PMT = 100,000 FV = 0 Solve by pressing PV. PV = An investment advisor suggests that you buy an annuity that pays $1,000 at the end of each of the next 10 years. If the interest rate is 9%, what price are you willing to pay for this annuity? Enter the data into your calculator: N = 10 1/YR - 9 PMT = 1,000 V = 0 Solve by pressing PV PV =