You woo the lottery! You are offered either a lump sum of $400.000 today or a 10 year annuity with semi-annual payments of $32.500 (i.e. 20 payments of this sue) with the first payment occurring six months from today. Your required return (i.e. effective rate version of your discount rate) is 12%. Which should you choose? Show your work! An Insurance broker calls you and despite your finance professor's warnings, you listen to their offer. The offered insurance product requires you to make payments semi-annually of $50 and do so for the next 20 years (1^st payment is 6 months from today). If your required rate of return is 6% per year (i.e. effective), what amount of money should the Insurance product offer to pay you at the end of 20 yean? You are investigating an Investment opportunity The security requires you to make monthly payments of $100 each (1^st payment is 1 month from today), over the next 10 years. It offers a nominal annual return of 6% with quarterly compounding. What is the future value of this security at the end of Its life (including all your payments and all interest)