Question: Please answer both questions. 3. You have just received notification that you have won the $2 million first prize in the Centennial Lottery. However, the

Please answer both questions.

3. You have just received notification that you have won the $2 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming youre around to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 8.4%?

4. In 1895, the first U.S. Open Golf Championship was held. The winners prize money was $150. In 2016, the winners check was $1,800,000. What was the percentage increase per year in the winners check over this period? If the winners prize increases at the same rate, what will it be in 2040?

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