At a 5% annual rate, compounded annually, how much more money will be available at the end of the 20-year state lottery prize payout period under option 2 than under option 1?

Your best friend has just won a state lottery. There are two options for receiving the prize: Option 1 is to accept a $200,000 cash payment today, which can be deposited in an account that pays 5% annually. Option 2 is to receive $20,000 at the end of each of the next 19 years and a $50,000 lump sum payment in the twentieth year (total cash received $430,000) Which option should would you recommend your friend select? Carle con Wie son, sx Yr. Mi Option 2 total cash payments (spread over 20 years) from the lottery = $430.000 10.4011 20 Option 1 Interest Balance 200,000 10,000 210,000 10,500 220, 500 11,025 231, 525 11,576 243, 101 12, 155 255.256 12,763 268,019 201,420 14,071 295,491 14,775 310, 266 15, $12 .228,779 16,289 -342,008 iz, 103 359, 171 1.7,959 $77,150 18,856398,986 19,799 415,286 20,499 07 21,829 458.404 22,920 487, 324 24,006 SOS, 390 - 25,270 590,660 BEBE I 19 US L2 Cor DXOX Som Wey & Sons, in 41