explain the answer

ou have just received notification that you have won the $1.25 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100^th birthday, 76 years from now. The appropriate discount rate is 6.8 percent. What is the present value of your winnings?

$11,288.16

$8,423.54

$5,309.91

$13,333.33

$12,500.00

Ten years ago, Jackson Supply set aside $130,000 in case of a financial emergency. Today, that account has increased in value to $330,592. What rate of interest is the firm earning on this money?

8.80 percent

9.78 percent

10.75 percent

11.28 percent