Question: QUESTION 8 4 points Save Answer You have just received notification that you have won the $2.04 million first prize in the Centennial Lottery. However,

QUESTION 8 4 points Save Answer You have just received notification

QUESTION 8 4 points Save Answer You have just received notification that you have won the $2.04 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 78 years from now. Required: What is the present value of your windfall if the appropriate discount rate is 6 percent? QUESTIONS 8 points Save Answer You would like to be a millionaire when you retire in 40 years, and how much you must invest today to reach that goal clearly depends on what rate of return you can earn. First, suppose you can earn 12.2% per year, and calculate how much you would have to invest today. Second, suppose you can only earn half that percentage rate, and calculate how much you would have to invest today. Divide the second by the first, to see how many times more you must invest today at half that annual rate grow it to $1 million over 40 years. (Do not round the numbers in intermediate calculations, but enter your answer rounded to 2 decimal places (for example, 231).)

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