value of an annuity versus a single amount assume that you just won the state lottery. your prize can be taken either in the form of $40,000 at the end of each of the next 25 years (i.e., $1,000,000 over 25 years) or as a single amount of $500,000 paid immediately. a. if you expect to earn 5% annually on your investments over the next 25 years, ignoring taxes and other considerations, which alternative should you take? why? b. would your decision in part a change if you could earn 7% rather than 5% on your investments over the next 25 years? why? c. at approximately what interest rate would you be indifferent between the two options?