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You have just won a lottery prize of $3,500,000 collectable in 10 yearly installments of $350,000 starting today. Why is this prize not really $3,500,000? What is it really worth today if money can be invested at 9 percent annual interest, compounded monthly? Use a spreadsheet to construct a table showing the present worth of each installment and the total present worth of the prize. Determine the present worth of each installment and the total present worth of the prize. (Round to the nearest dollar as needed.) Installment Present Worth 1 SI 2 $ 3 $ $ 5 $ 4 6 7 S $ $ 8 9 10 $ SO $ Total May has $2100 in her bank account right now. She wanted to know how much it would be in one year, so she calculated and came up with $2263.56. Then, May realized she had made a mistake. She intended to use the formula for monthly compounding, but instead, she used the continuous compounding formula. Redo the calculation for May, and find out how much will actually be in her account a year from now. May will have $ in her account a year from now when using the formula for monthly compounding. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.) A bank advertises savings account interest as 2.5 percent compounded daily. What is the effective interest rate? (Assume that there are 365 days per year.) The effective annual interest rate is approximately percent (Round the final answer to two decimal places as needed. Round all intermediate values to seven decimal places as needed.)

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