Chan just won the grand prize at the city lottery, which consists of $100,000 at the end of one year, $200,000 at the end of two years, and $300,000 at the end of three years. The city lottery commission offers Chan the option of receiving a single payment of $700,000 at the end of five years, as an alternative to the three annual payments. If Chan believes that 8% is the right interest rate for borrowing or lending in the coming years, should Chan stick with the three payments or accept the single payment of $700,000? What if the annual interest rate is reduced to 5%? (Ignore taxes.)