2024 – Several years ago The Wall Street Journal reported that the winner of the Massachusetts State Lottery

Several years ago, The Wall Street Journal reported that the winner of the Massachusetts State

Lottery prize had the misfortune to be both bankrupt and in prison for fraud. The balance of the

prize was $9,420,713, to be paid in 19 equal annual installments (There were 20 installments,

but the winner had already received the first payment). The bankruptcy court judge ruled that the

prize should be sold off to the highest bidder and the proceeds to be paid to the creditors.

(a) If the interest rate was 8%, how much would you have been prepared to bid for the prize?

(b) Enhance Reinsurance Company was reported to have offered $4.2 million. Find the return

that the company was looking for.

Please explain your answer in detail and provide in-text citations.

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I have the answer attached as well. Please provide it into a paper follow by APA 7 format.  2 citations needed (1 from text book), I have book attached.