Exercise $22$: Calculating an Unknown Interest Rate with

Multiple Factors: You have already won $$2$ million!!!! Just peel

the game piece off the Instant Winner Sweepstakes ticket, and

mail it to us along with your orders for subscriptions to your two

favorite magazines. As a Grand Prize Winner you may choose

between $$1$ million cash prize paid immediately or $$100$ ooo per

year for $20$ years$-$that's $$2$ million!!! Suppose, that instead of

receiving one lump sum of $$1$ million, you decide to accept the

TIME VALUE OF MONEY

$20$ annual installments of $$100000.$ if you are like most jackpot

winners, you will be tempted to spend your winnings to improve

your lifestyle during the first several years. Only after you get this

type of spending "out of your system," will you save later sums for

investment purposes. Suppose that you are considering the

following two options: