Congratulations! You've won a state lotto! The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout options.) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) Requirement Assuming that you can earn 6% on your funds, which option would you prefer? (Round your answers to the nearest whole dollar.) Calculate the present value for each payout. X X Reference i Reference i Option #1: Option #2: Present Value of $1 Present Value of Annuity of $1 Option #3: 1% 2% 3% 4% 5% 6% 6 10% 12% 14% 16% 18% 20% Periods 1% 2% 6 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Periods 0.877 0.862 0.847 0.833 would be the preferred payout option. Period 1 0.990 0.980 |0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 1.528 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 Period 2 0.980 0.961 0.943 2.106 2.941 2.884 2.829 2.775 2.723 2.673 2.577 7 2.487 2.402 2.322 2.246 2.174 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.57 Period 3 2914 2.798 2 690 2.589 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 Option 2 3.433 3.274 3.127 2 991 Period 5 0.951 0.906 0.863 0.822 | 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 5 4.85 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 5.417 5.242 5.076 4.917 4 623 4.355 4.111 3.889 3.685 3.498 3.326 Option 3 Period 6 0.942 0.888 |0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 6 5.795 5.601 3.812 3.605 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 Option 1 4.344 4.078 3.837 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 | 0.404 0.351 0.305 0.266 0.233 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 0.225 0.194 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 9 |0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 |0.361 0.308 0.263 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 Period 10 0 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 10 9.471 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 5.938 5.453 5.029 4.656 4.327 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 10.575 9.954 9.385 8.863 8.384 7 536 6.814 6.194 5.660 5.197 4.793 4.439 2 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 12 11.255 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 13 12.134 11.348 10.635 12 106 11 296 10 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 14 13.004 11.938 11.118 10.380 9.712 8.559 7.606 6 6.142 5.575 5.092 4.675 Period 15 13.865 12.849 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.104 0.073 0.051 0.037 0.02 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 Period 20 0.820 0.673 0.554 0.456 |0.377 0.312 0.215 0.149 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.059 0.038 0.024 0.016 0.010 Period 25 22.023 0.020 0.012 0.007 0.004 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 Period 30 |0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.001 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 Done Print Done PrintCongratulations! You've won a state lotto! The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout options.) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) Requirement Assuming that you can earn 6% on your funds, which option would you prefer? (Round your answers to the nearest whole dollar.) Calculate the present value for each payout. X X Option #1: i Reference i Reference Option #2: Option #3: Future Value of Annuity of $1 Future Value of $1 5% 6% 8% 10% 12% 14% 16% 20% would be the preferred payout option. 4% 18% Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Periods 1% 2% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.12 1.140 1.160 1.180 1.200 Period 1 1.000 1.000 1.300 1.346 1.392 1.440 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 3.374 3.440 3.506 3.572 3.640 1.482 1.561 1.643 1.728 Period 3 3.030 3.060 3 091 3.122 3.153 3.18 3.246 3.310 Period 3 1.030 1.06 1.093 1.12 1.158 1.191 1.260 1.331 1.405 5.368 1.939 2.074 Period 4 4 060 4.122 4 18 4,246 4.310 4.375 4 506 4 641 4.779 4.921 5.066 5.215 1.574 1 689 1811 7 442 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 2 488 Period 5 5.101 5 204 5.309 5.416 5.526 5.637 5.867 6 105 6.353 6.610 6.877 7.154 Period 5 1.051 1.10 1.159 1.217 1.276 1.33 1.469 1.611 1.762 1.925 2.10 2.288 7.336 7.716 8.115 8.53 8.977 9.442 9.930 2.986 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 7.66 7.898 8.142 8.394 8.923 9.487 10.089 10.73 11.414 12.142 12.916 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.58 Period 7 7.214 7.434 4.300 3.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 Period 8 1.083 1.172 1.267 1.369 477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 Period 12.488 14.776 16.085 17.519 19.086 20.799 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 9.369 9.755 10.159 10.583 11.027 11.491 13.579 Period 9 1.094 1.195 1.305 1.423 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 5.234 6.192 Period 10 Period 10 1.10 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 11 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 Period 11 11.567 12.169 12.808 13.486 14.207 1.116 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 8.91 Period 12 1.127 5.936 7.288 12.683 48.497 Period 12 1.268 1.426 1 601 1.796 2.012 2.518 3.138 3.896 4.818 24.523 28.029 32.089 36.786 12.219 2.133 2.720 3.452 4.363 5.492 6 886 8.599 14.680 15.618 16.627 18.882 1.665 1.886 10.699 Period 13 13.809 17.713 Period 13 1.138 1.294 1.469 32.393 37.581 43.672 50.818 59.196 1.980 2.261 2.937 3.797 4.887 6.261 7 988 10.147 12.839 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 Period 14 1.319 1.513 51.660 50.965 1.149 1.732 72.035 3.172 4.177 5.474 7.138 9.266 11.974 15.407 Period 15 16.097 17.293 18.599 20.024 21.579 23 276 27.152 3 31.772 37.280 43.842 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 Period 20 22.019 24 297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 Period 20 1.220 1.486 1.806 2.19 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 Period 25 1.282 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 Period 25 28.243 32.030 36.459 41.646 47.727 790.948 34.785 40.568 47.575 56.085 66.439 79 058 113.283 164.494 241.333 356.787 530.312 1,181.882 Period 30 1.348 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 Period 30 188.884 378.721 750.378 1,469.772 Period 40 48.886 60.402 75.401 95.026 120.800 154 762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 Period 40 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 Print Done Print Done Enter any number in the edit fields and then continue to the next