1. Suppose a state lottery prize of $5 million is to be paid in 20 payments of $250,000 each at the end of each of the next 20 years. If money is worth 10%, compounded annually, what is the present value of the prize?
2. How much is needed in an account that earns 8.4% compounded monthly in order to withdraw $1000 at the end of each month for 20 years?