Congratulatons! You have won a state lattory. The state lottery offors you the following (after-tax) payout options: Reference Option #1 : S 1 5,000,000 after five yoars Option $2,200,000 per year for fivo yoars Option 3: $10,000,000 after three Click the i n to view the Present Value of Annuity of $1 ble (Cick the ioon to view the Future Value of Annuity of $1 table.) (Click the icon to view the Present Value of $1 table Present Value of PenD, 1% | 2% | 3% | 4% 5% | 8% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% 0990 | 0990 | 0971 | 0962 | 0962 | 0943 935 | 0.925 | 0.917 | 0.909 | 0.893 | 0.877 | 0.870 | 0.862 0847 0833 2 | 0980 | 0961 | 0943 | 0925 | 0907 | oesd 0873 10.857 0.842 | 0.826 | 0.797 10.769 0.756 0.743 0718 0894 3 0571 0542 0515 0889 84 0840 Q8150794 072 0.751 0.712 0.75 0.658 0.641 0609 057S 4 0561 0524 0888 0855 0823 0732 0.7530.735 0.708 0.683 0.636 0.5 0.57 0.55 051 0462 5 | 0961 | 0.506 | 0B53 | 0.822 | 0784 10.747 | 0.713 | 0.681 | 0.650 | 0.621 | 0.567 | 0.519 | 0.497 | 0.476 | 043 0412 6 | 0942 | 0888 | 0837 0790 0.746 0.705 0.666 | 0.630 | 0.596 | 0.564 | 0.507 0.456 | 0.432 | 0.410 0.370 0.335 7 | 0H3 | 0871 | 0813 0780 0711 0.685 | 0.623 | 0.583 | 0.547 | 0.513 | 0.452 | 0.400 | 0.376 | 0.354 | 0.314 0279 8 0923 | 0853 | 0789 | 0731 |d677 | a627 0.582 | 0.540 | 0.502 | 0.467 0.404 | 0.351 0.327 0.305 0.266 0253 9 | 0914 | 0837 0786 | 0703 | 0645 | 0.592 | 0.544 | 0.500 0.460 0.424 0.361 | 0.308 | 0.284 0.263 0.225 0.194 (Cick the icon to view the Future Value of $1 table.) Assuming you can earn 8% on your funds, which option would you prefer? The present value of the payout is: (Round your answers to the nearest whole dollar) Option #1 Option #2 Option #3: Enter your answer as a numeralg 1) Payout Option # has the highest present value using the 8% discount rate. Thoreiro, it appen to be the most favorable aption. 10 005 20 744 6 814 0558 05084830422 0.38 0.32 0.270 0.247 0.227 0.191 016 11 0836 0804 0722 0650 05850527 0475 0.4290.388 0.350 0.287 0.237 0.215 0.155 0162 0.135 12 0887 0.788 0701 0625 0557 0437 04440.3370.355 0.319 0.257 0.208 0.187 0.18 0137 0.112 15 O81 0743 0642 655 0481 0417038203150275 0.239 0.1830.140 0.123 0.18 ODA 0085 16 083 0728 23 0534 0458 0334 339 0220252 0.218 0,13 0,123 00 .053 001 0054 7 0844 0714 0605 0513 0436 031 031702700.231 0.198 0.146 0.108 0.03 0.050 0060 0045 18 0836 0.700 058T 0434 04160.350 0.295 0.2500.212 0.180 0.130 0.05 0.01 0.0E 0051 0038 19 0828 01686 057 0475 0396 0331 0.270.2320.134 0.164 0.116 0.053 0.070 0.DEO 0043 0.031 20 0B20 | 03 | 0554 0.456 0.377 0.312 | 0.258 0.215 | 0.178 | 0.149 | 0.104 0.073 0.001 0.051 0D57 0026 21 0811 | 0680 | 0538 | 0439 | a359 | 0.294 | 0.242 0.199 | 0.164 0.135 | 0.0g3 | 0.064 | 0.053 0.044 0.031 0.022 22 0803 GE47 0522 0422 34 0278 0228840.150 0.123 0.083 0.058 0.048 0.038 0028 0018 22 0795 | 0634 | 0507 | 0406 | 0.326 | 0.262 | 0.211 | 0.170 0.138 12 0.074 | 0.049 | 0.040 | 0.033 022 0015 24 0.788 02 0492 0380 31D 2470150125 100 0.043 0.035 0.028 0019 0013 25 0.780 0610 0478 035 0235 0233 0184 0.1450.115 0.0 0.0 0.038 0.030 0.024 0016 0010 26 0.772 0508 0464 0361 0281 0220 0172 01350.105 0.084 0.053 0.033 0.06 0.021 0014 0.009 27 0.784 0586 | 0450 .347 0.208 0.207 1 | 0.125 | 0.098 | 0.078 | 0.047 0.029 0.023 0.018 001 1 0.007 28 0.757 0574 0.437 0333 0.255 0.196 10.150 0.118 | 0.090 | 0.069 | 0.042 0.026 0.020 0.016 0010 | 0006 29 0.749 | 0533 | 0424 | 0321 | 0.243 | 0.185 | 0.541 0.107 | 0.082 | 0.063 | 0.037 | 0.022 | 0.017 0.014 000 0005 30 | 0742 | 0552 0412 | 0.308 | a231 | 0.174 | 0.131 | 0.099 | 0.075 0.057 0.033 0.020 0.015 | 0.012 0007 0004 40 0672 0453 030 0206 0142 000.0450.032 0.022 0.011 0.005 0.004 0.003 0001 000 50 0608 0372 0228 0141 0.087 0.054 0.034 0.0210.013 0.009 0.003 0.001 0.001 0.001 0000 0.000 Print Done Enter any number in the edit fields and then continue to the next
