The following table gives the present value for each of the $280,000 payouts.

At the bottom they

are summed and then the initial $283,770 is subtracted out to get the equal price that an investor
should pay. This is not a good deal for Outing because if she would earn $2,405,238 from the
lottery ticket payouts.

Using the same information as the first problem, I simply used the excel goal seek
function and set it to $2,000,000. Using this I was able to find the interest rate that would
be necessary to have equal payment. The interest rate is 10.38%. The following table
shows the new values.