Question: 1. Prizes are often not worth as much as claimed. Place a value on a lottery prize of $1,000,000 which is to be received in

1. Prizes are often not "worth" as much as claimed. Place

1. Prizes are often not "worth" as much as claimed. Place a value on a lottery prize of $1,000,000 which is to be received in 10 equal payments over 10 years, that is, $100,000 per year, with the first payment beginning a year from today. Assume annual interest rate of 11% over the 10 years.(hint: present value of an ordinary annuity) (show your work and justify your answer)

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