Finance / present value / future value?

On the way to Stop & Shop, you buy a lottery ticket and win $100,000. The catch is that the money will be paid to you in two installments: $50,000 today and $50,000 at the end of 5 years from now. a. Assuming an interest rate of 8%, what is the present value of your total lottery payments? b: Suppose that you... show more On the way to Stop & Shop, you buy a lottery ticket and win $100,000. The catch is that the money will be paid to you in two installments: $50,000 today and $50,000 at the end of 5 years from now.
a. Assuming an interest rate of 8%, what is the present value of your total lottery payments?

b: Suppose that you invest the $50,000 winnings that you receive today and earn 8% annually for the next 5 years. What is the future value of your total lottery payments?

A. looking for formula of present value
B. looking for formula of future value of total payments
2 answers 2