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Alexandra has just won a lottery of RM61 million. The organizer of the lottery has given her 3 options to choose. Option 1 - receive

Alexandra has just won a lottery of RM61 million. The organizer of the lottery has given her 3 options to choose. Option 1 - receive a lump sum of RM61 million today Option 2 - receive 10 end-of-year payments of RM9.5 million Option 3 - receive 30 end-of-year payments of RM5.5 million.


a. Which option should she choose if she earns 7% annually? 


b. What is the best option if she expects to earn 8% annually?


c. Which option is recommended if she was to earn 9% annually?

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