1. How much money does Samantha need now to fund her travels? 2. After checking with a number of banks, Samantha learns she'll be able to invest her funds only at 6%. How much does she need now to fund her travels? Choosing a lottery payout option (Learning Objective 3) E12-25A Congratulations! You've won a state lotto! The state lottery offers you the following (after- tax) payout options Option #1: $14,500,000 six years from now Option #2: $2.200,000 at the end of each year for the next six years Option #3: $12,500,000 four years from now Requirement Assuming that you can earn 6% on your funds, which option would you prefer? Solve various time value of money scenarios (Learning Objective 3) Suppose you invest a sum of $4,000 in an interest-bearing account at the rate of 10% per year. What will the investment be worth six years from now? How much would you need to invest now to be able to withdraw $6,000 at the end of every year for the next 20 years? Assume a 12% interest rate. E12-26A 1. 2