Congratulations! You have just won a $40 million lottery and have elected to receive $2 million per year for 20 years. Assume that a 4 percent interest rate is used to evaluate the annuity and that...

Congratulations! You have just won a $40 million lottery and have elected
to receive $2 million per year for 20 years. Assume that a 4 percent interest
rate is used to evaluate the annuity and that you receive each payment at
the beginning of the year.
a. What is the present value of the lottery?
b. How much interest is earned on the present value to make the $2 millionper-
year payment?