What is the interest rate

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-Keenan has won the lottery for $10,000,000. He is offered a cash payment now of $8,000,000, or 10 annual payments of $1,000,000.

-What is the interest rate that makes these two amounts equal?

-PV =
-FV =
-I = ?
-N =
-Pmt =

-Answer: ___________

-If you can invest at 6% how much would you have after 10 years if you invested the $8,000,000?

-PV =
-FV = ?
-I =
-N =
-Pmt =

-Answer: ___________

Reference no: EM133033709

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