Gabrielle just won $2.2 million in the state lottery. She is given the option of receiving a of $1,600,000 now, or she can elect to receive $110,000 at the end of each of the next20 years. If Gabrielle can earn4 % annually on her investments, which option should she take?

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Part 1

If Gabrielle takes the prize as an annuity, the present value of the -year ordinary annuity is $

enter your response here. (Round to the nearest dollar. A)Annuity payment. B)Lump sum payment