Question

The $45.0 million lottery payment that you have just won actually pays $3.0 million per year...

The $45.0 million lottery payment that you have just won actually pays $3.0 million per year for 15 years. The interest rate is 9%.

a.

If the first payment comes in 1 year, what is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in dollars, not millions, rounded to 2 decimal places.)

  Present value $

b.

What is the present value if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in dollars, not millions, rounded to 2 decimal places.)

  Present value $
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