You have won the Kansas state lottery. You have to choose between two payout plans. The first

Question:

You have won the Kansas state lottery. You have to choose between two payout plans. The first would pay you $500,000 immediately. The second would pay you $50,000 per year for 20 years, with the first payment occurring at the end of period 1, and the last payment occurring at the end of period 20.
a.) If your personal is 6%, which plan has a higher economic value?
b.) If your personal is 9%, which plan has a higher economic value? Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...