# Question: you are the winner of a 10 million lottery where...

###### Question details

You are the winner of a $10 million lottery where you get to choose between (option 1) $5 million today or (option 2) $500,000 at the beginning of each year, starting today, for the next 20 years. If the annual interest rate (EAR) is 9%, which option should you pick and why? What if the interest rate (EAR) is 6%?