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1. You recently won a lottery and have the option of receiving one of the following thiee prizes: (1) $62.000 cash immediately. (2) of $12.500

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1. You recently won a lottery and have the option of receiving one of the following thiee prizes: (1) $62.000 cash immediately. (2) of $12.500 beginning one year from today. Assuming an interest rote of 6% compounded annually. determine the preserit value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future The compary will make antual deposits of $110,000 into a speciat bank account ar the end of each of 10 years Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of S1. PV of S1. PVA of \$1. PVA of S1. EVAD. of \$1 and PVAD of S1) Complete this question by entering your answers in the tabs below. You recently won a lottery and have the option of recelving one of the following three prizes: (1) $62,000 cash immediately, (2) $19,000 cash immediately and a 56x-year annual annuity of $7,600 beginning one year from today, or (3) a six-year the present value for the above options. Which option should you choose? Note: Pound your final answers to nearest whole dollar amount. Show lessa Answer each of the following independent questions 1. You recently won a lottery and have the option ol recelving one of the following three prizes: (1) $62,000 cash immediately. (2) $19,000 cash immediately and a six-ycor annual annuty of $7,600 beginning one year from today, or (3) a six-year arival annulty of $12,500 beginning one year from todoy. Assuming an interest rate of 6% compoundod annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay cortain debts due in the future The compary will make annual A company wants to accumulate a sum of money to repay cortain debts due in the future The company wil make annas deposits of $110,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of S1. PV of S1. PVA of S1. PVA of \$1. EVAD of S1 and PVAD of S91) Complete this question by entering your answers in the tabs below. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual A company wants to accumutate a sum of money to repay certain debts due in the future. The company wil make annual. deposits of $110,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest. deposits of $110,000 into a special bank account at the end of each of 10 year5, Assuming the bank Note: Pound your final answers to nearest whole dollar amount. Noment and Show less

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