After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company. It has arrived with the good news that you are the big winner, having won $21 million. You have three options.

(a) Receive $1.05 million per year for the next 20 years.

(b) Have $8.25 million today.

(c) Have $2.25 million today and receive $750,000 for each of the next 20 years.

Your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.