Question
Allison just won the state lottery. She has the choice of receiving $30,000,000 today or $50,000,000 at the end of ten years. If she can
Allison just won the state lottery. She has the choice of receiving $30,000,000 today or $50,000,000 at the end of ten years. If she can invest her funds at 4% annually, which is the better choice and why?
Group of answer choices
$50 million ten years from now because the future value of $50 million is more than the future value of $30 million.
$30 million today because it will be worth more than $50 million ten years from now.
$50 ten years from now because it is worth $33 million in today's dollar.
$50 million ten years from now because that is worth $33,778,208.44 in today's dollar, which is more than $30 million.
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