1. You just won the lottery! As your prize you will receive $1,200 a month for 100 months. If you can earn 8% on your money, what is this prize worth to you today?
A. $ 90,723.76
B. $ 87,380.23
C. $ 88,104.26
D. $ 87,003.69
E. $ 87,962.77
2. An annuity is:
A. A debt instrument that pays no interest.
B. A stream of payments that varies with current market interest.
C. Something that has no value.
D. A level stream of equal payments over a specified period of time.