On his way home from work, bill harris was listening to the radio, which reminded him of the large lotto jackpot that night. so, bill bought a ticket and won the jackpot of $50 million. bill will be paid in 20 annual installments of $2.5 million. if bill had selected the "cash value option", and the prevailing interest rate was 6%, his lump-sum payment would be: (hint, present value of $2.5 million over 20 periods, using a 6% rate)

After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?