Comparison of Alternatives

Jane Bauer has won the lottery and has the following four options for receiving her winnings:

Receive $95,500 at the beginning of the current year

Receive $102,185 at the end of the year

Receive $20,090 at the end of each year for eight years

Receive $9,730 at the end of each year for 30 years

Jane can invest her winnings at an interest rate of 7% compounded annually at a major bank.

Calculate the Present value for each of the above options. Round all answers to the nearest dollar. Use the appropriate present or future value table that may be found by clicking on the Present & Future Values button.

	Present Value
Option 1	$
Option 2	$
Option 3	$
Option 4	$

Which of the payment options should Jane choose? - Select your answer -Option 1Option 2Option 3Option 4