Who Wants to Be a Millionaire? 

1. You just won $1 million dollars in the lottery! They offer you two options for your winnings: a lump sum payment right now, or $100,000 a year over the next 10 years. Current 10-year interest rates are at 5%, and the current tax on lottery winnings is 40%. 
2. What is the amount you will receive today with the lump sum option?
3. Sorry, you didn't win the lottery, but here's a way you can still be a millionaire! Starting at age 22, every night you take $5 out of your pocket and put it in a manila envelope (title it "Lottery Winnings"). At the end of the year, you place the money from the envelope in a stock fund with an average interest rate of 10%.
4. How much will you have in the account when you retire at age 65?