You have won the lottery and received a check for $1,275,156 today. You invest the lottery check today at an annual interest rate of 8% and allow it to build for a full ten years

At that point in time, you shift the money to an account paying only 6% per year. You plan to spend $175,000 per year in retirement (assume equal annual end-of-the-year cash flows) for 30 years, and your first retirement cash flow is exactly eleven years from today. Will you have enough money to fully fund your desired retirement? Use a calculator to determine your answer.
A) Yes, because your investment will allow you to spend up to $225,000 per year in retirement.
B) No, because your investment will allow you to spend up to only $158,000 per year in retirement.
C) Yes, because your investment will allow you to spend up to $200,000 per year in retirement.
D) No, because your investment will allow you to spend up to only $137,000 per year in retirement.

Answer: C
Explanation: C) Calculator Solution for money you will have at the end of 10 years:
MODE = END
INPUT 10 8.0 -1,275,156 0 ?
KEY N I/Y PV PMT FV
CPT 2,752,966.16

Calculator solution for the (present value of) the money you need at the end of 10 years:
MODE = END
INPUT 30 6.0 2,752,966.16 ? 0
KEY N I/Y PV PMT FV
CPT 200,000