Exercise $5-15($Algo$)$ Future and present value $[$LO$5-3,5-7,5-8]$

Answer each of the following independent questions.

You recently won a lottery and have the option of receiving one of the following three prizes: $(1)$ $$60,000$ cash immediately, $(2)$ $$18,000$ cash immediately and a six$-$year annual annuity of $$7,500$ beginning one year from today, or $(3)$ a six$-$year annual annuity of $$11,800$ beginning one year from today. Assuming an interest rate of $5\%$ compounded annually, determine the present value for the above options. Which option should you choose?

A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $$105,000$ into a special bank account at the end of each of $10$ years. Assuming the bank account pays $6\%$ interest compounded annually, what will be the fund balance after the last payment is made in ten years?

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Complete this question by entering your answers in the tabs below.

Required $2$

You recently won a lottery and have the option of receiving one of the following three prizes: $(1)$ $$60,000$ cash immediately,

$(2)$ $$18,000$ cash immediately and a six$-$year annual annuity of $$7,500$ beginning one year from today, or $(3)$ a six$-$year annual annulty of $$11,800$ beginning one year from today. Assuming an interest rate of $5\%$ compounded annually, determine the present value for the above options. Which option should you choose?

Note: Round your final answers to nearest whole dollar amount.

$\backslash$table$[[,\backslash$table$[[$Annulty$],[$Payment$]],$PV Annuity,$+,\backslash$table$[[$Immediate$],[$Cash$]],=,$PV Option$],[$Option $1,,,+,,=,$$$,0],[$Option $2,,,+,,=,$$$,0],[$Option $3,,,+,,=,$$$,0],[$Which option should you choose?,,,,,,,$]]$