Question: answer all steps Question 5: Congratulations! You just won $50 million in the Illinois State Lottery. The Lottery Commission offers you a choice between 20

answer all steps answer all steps Question 5: Congratulations! You just won $50 million in

Question 5: Congratulations! You just won $50 million in the Illinois State Lottery. The Lottery Commission offers you a choice between 20 annual payments starting at T1, or a lump-sum payment of $30 million. Using a discount rate of 3.75%, which option would you choose? (1) What is the value of the annuity? (2) What is the annuity value with a first payment at T0 ? (3) What is the value of the annuity starting at T, and growing at 1% per year

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