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5. You just won the lottery!!!, and the lottery company gives you several options to get your reward. - Option 1: Lump-sum today of
5. You just won the lottery!!!, and the lottery company gives you several options to get your reward. - Option 1: Lump-sum today of $62,000,000. Option 2: 10 end-of-year payment of $9,500,000. Option 3: 30 end-of-year payment of $5,600,000. Answer the following questions. a. If you can earn 8% annually, which should you choose? b. If you expect to earn 9% annually, which is the best choice? c. Explain how interest rates influence your choice.
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