1. You just won the lottery, which promises you $200,000.00 per year for the next 20 years, starting in one year. If your discount rate is 8.75%, what is the "present value" of your winnings?
$1,937,916
$2,021,652
$1,858,705
$1,993,634
$2,040,063
2. What is the future value of an ordinary annuity that pays $700 per year for 10 years? Use a nominal rate (monthly compounding) of 7.25%.
$9,901
$10,676
$9,953
$9,987
$9,981
Please show work/how to enter into calculator.