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4. What is the present value of $500,000 to be paid in 10 years with an interest rate of 8 percent? A. $221,600 B. $231,600

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4. What is the present value of $500,000 to be paid in 10 years with an interest rate of 8 percent? A. $221,600 B. $231,600 C. $241.600 D. $251,600 5. What is the present value of 10 equal payments of $15,000 in 10 years with an interest rate of 10%? A. $72,169 B. $82,169 C. $92,169 D. $96.169 (Bonus Question) 6. You have just won the state lottery and have two choices for collecting your winnings. You can collet $50,000 today (option 1) or receive $10,100 per year for the next seven years (option 2). A financial analyst has told you that you can earn 10% on your investments. Which alternative should you select? A. Option 1 B. Option 2 C. Option 1 & 2 are equally good for me

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