Homework: Chapter 26 Homework Score: 0 of 1 pt 2 of 3 (1 complete) E26-23 (similar to) Congratulations! You have won a state lottery. The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout options.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Assuming you can earn 6% 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: * Data Table Option #1: $14,000,000 after five years Option #2: $2,200,000 per year for five years Option #3: $13,000,000 after three years Print Done Periods 1 0 hich 16% 0.862 0.743 0.641 our 0552 0.402 0.335 1% .990 0.980 0.971 0.961 0.951 0942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 0.660 0.647 0.634 0.622 0610 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0.570 0.554 0.538 0.522 0.507 0.492 0.478 4% 0.962 0.925 0.889 0.655 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 5% 0.952 0.907 0.864 0.823 0.784 0.746 0711 0.677 0.645 0.614 0.585 0.557 0.530 0.505 0.481 0.458 0.436 0.416 0.396 0.377 0.350 0.342 0.326 0.310 0.295 Present Value of $1 6% 7% 8% 9% 0.9430.935 0.926 0.917 0.890 0.873 0.8570.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.705 0.666 0.630 0.595 0.665 0.623 0.583 0.547 0.627 0.582 0.540 0.502 0.592 0.544 0.500 0.460 0.558 0.508 0.463 0.422 0.527 0.475 0.429 0.388 0.497 0.444 0.397 0469 0.415 0.368 0.326 0442 0.388 0.340 0.299 0.417 0.362 0.315 0.275 0.394 0.339 0.292 0.252 0.371 0 231 0.350 0.296 0 212 0.331 0.277 0.194 0.312 0.258 0.178 0.294 0.164 0.278 0 226 0.150 0.262 0.211 0.170 0.138 0.247 0.197 0.158 0.125 0.233 0.184 0.146 0.116 0356 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0218 0.198 0.180 0.164 0.149 0.135 0.123 0.112 0.102 0.092 12% 14% 15% 0.893 0.877 0.870 0.797 0.769 0.756 0.712 0.675 0.658 0.636 0.592 0.572 0.567 0.519 0.497 0.507 0.456 0.432 0.452 0.400 0.376 0.404 0.351 0.327 0.361 0.308 0.284 0.322 0.270 0.247 0.287 0.237 0.215 0.257 0.208 0.187 0.229 0.1820.163 0.160 0.141 0.183 0.140 0.123 0.163 0.123 0.107 0.146 0.108 0.093 0.130 0.095 0.081 0.116 0.083 0.070 0.104 0.073 0.061 0.093 0.084 0.053 0.083 0.056 0.046 0.074 0.049 0.040 0.066 0.043 0.035 0.0590.038 0.030 18% 20% 0.847 0.833 0.7180.694 0.609 0.579 0.516 0.482 0.437 0.370 0.314 0279 0.266 0.233 0.225 0.194 0.191 0.162 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 0.071 0.054 0.050 0.045 0.051 0.038 0.043 0.031 0.037 0.026 0.031 0.022 0.026 0.018 0.022 0.015 0.019 0.013 0.016 0.010 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051 0.044 0.038 0.033 0.028 0.024 0205 0.317 0.844 0.836 0 828 0 820 0456 0242 0.811 0803 0.795 0.788 0.780 0439 0.422 0.406 0.390 0.375 25 en cil Print Done 5242 5206 5971 241 72 494 Present Value of Ordinary Annuity of $1 Pers 16 | T | 9% 9% | 10% TE 1411 16 1% 120% 090 0 960 0971 09520952 0949 10935 0926 09170909 0.893 087 0.870 | 0. 8 0 847 1.70 11.92 1913 41.886 1.859 1.833 | 1.80 1.783 | 1.7591.73 |1.80 | 1.647 | 1.626 11.05 | 1.56% 1.526 2424 29 2775 1223 26012 257 2531 2467 2402 2322 2283 2246 2174 2 39023808 3.717 3630 13.546 3465 | 3387 3.31232403170 | 3037 2014 285 296290 2563 | 4.853 | 4.713 14.580 4452 | 4.329 | 4212 | 4.100 3.993 13.890 3.791 3.605 | 3.433 3.352 | 3274 | 13127 2991 5.795 | 5.601 5.47 5.076 | 4.917 4.767 4.623 | 446 | 4.355 4.11 3.889 3.784 3.685 3.496 3.326 6.728 6472 6230 6.002 5.796 5.582 5.389 5.033 A BED 4.564 4.266 4.160 4033 3812 3. 605 765 7325 7020 733 6.463 6210 | 55355.335 4.96 99 4487 4.34 4.078 3.837 8.56618.16217.7861743517.10816,802 6515 5.95 | 5.759 5328 4.46 4.507 4.303 41 194718983 | 6530 | 18.1 | 7.72 7360 17.024 6.710 6 ] | ET45 5.650 5216 5.019 4.192 | 10.36 9787 9253 | 8.760 | 8376 7.887 7499 7.139 6805 16495 5.938 5453 5234 4.65% 4327 | 11.25 |10.575 | 9958 19.345 8863 6.364 7.536 17.161 6.814 6.194 5.60 5.197 TS 439 | 12.134 | 11.346 | 10.6359966 19394 | B.853 6.356 7.904 | 7487 17103 6.424 5.842 4.533 | 13.004 2.1061296 | 10.5 19.999 9.295 8745 7.786 7.367 6.628 6.002 4.51] 13.865 2. Bug 1,938 | 1.198 0.390 9.712 9.106 8.59 | 8.06117.606 6.11 6.142 5.002 4.675 14.71 13576 12 56111 68 10 63 10.10% 9447 8518313 7824 6974 6265 5.162 4.730 15 14 22 13.1 12 1 274 104 976 1286 8022 7.120 6.373 6 CAT 5222 75 16 38 49 | 13.754 12659 1.680 10 828 1008 9372 18.75 | 8204 7250 467 6.126 5273 4.812 | 17 226 | 15.678 | 14 324 | 13.134 | 12.085 | 11.168 | 10.336 | 9.604 | 8.950 || 6.365 7.366 6.550 1 5.877 5316 44 18.046 | 16.351 14.87 | 13.590 | 12 462 | 11.470 | 10.594 9816 18.129 | 6.514 | 7.469 | 6.623 6259 5.929 5.353 4870 18.857 17011 | 15.415 | 14.029 | 12.821 1.764 | 10.836 | 10.0470202 18.40 7.562 66876312 5.973 5.384 44.91 19 660 | 17 68 15 937 14 A51 13 18 12 042 11.061 10 20119442 | B772 17.645 16743 | 6359 6.01. 5.410 4909 20 4% 18 29 16 AAA 14857 43 4 2303 1272 10.371 | 9.60 | 8863 7716 16.792 6399 6. 044 54321 925 21 243 16 914 16.9% 15 247 13. 2 550 149 | 10.5 47078985 774 6635 1643 603 5451 4937 2023 19522 17413 15 21.04 12.70 1654 10.75 9623 19077 7843 6473 EAR-609754674946 5 4. 10 5. Oce 5 BBww8w cl Print Done Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 2 1.020 1.040 1.061 1.0821.103 1.1241.145 1.166 1.1881.210 1.254 1.300 1.323 3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.405 1.482 1.521 4 1.041 1.082 1.126 1.170 1.216 1.2621.311 1.360 1.4121.464 1.5741.689 1.749 5 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 6 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.9742.195 2313 7 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.7141.828 1.949 2211 2.502 2660 B 1.083 1.1721.267 1.369 1.477 1.594 1.7181.851 1.993 2.144 2.476 2.853 3.059 1.094 1.195 1.305 1.423 1.551 1.589 1.838 1.999 2.172 | 2358 2.773 3.252 3.518 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.58028533.479 4.226 4.652 1.1271.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4,818 5.350 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.513 1.732 1.980 2261 2.579 2.937 3.342 3.798 4.887 6.261 7.076 1.161 1.346 1.558 1.801 2.079 2.3972.759 3.1723.642 4.177 5.4747.1388.137 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 6.130 8.137 9.358 1.184 1.400 1.653 1.948 2292 2693 3.159 3.700 4.328 5.054 6.866 9.276 10.76 1.196 1.428 1.702 2.026 2.407 2854 3.380 3.996 4.717 10.58 12.38 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 6.142 6.116 8.613 12.06 14.23 1.220 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.6046.727 9.646 13.74 16.37 1.232 1.516 1.8602279 2.786 3.400 4.1415.034 6.1097.400 10.80 15.67 18.82 1.245 1.546 1.916 2.370 2.925 3.604 4.430 6.437 6.659 8.140 12.10 17.86 21.64 1.257 1.577 1.9742.465 3.0723.820 4.741 5.87172588.954 13.55 20.36 24.89 1.270 1.608 2.033 2.563 3.225 4.049 6.072 6.341 7911 9.850 15.18 23 21 28.63 1.282 1.641 2.094 2.666 3.386 4.292 6.427 6.848 8.623 10.83 17.00 26.46 32.92 11 ned Print Done Periods 2 3 10% 1.000 2.100 3.310 4.641 6.105 7.716 9.487 11.44 13.58 1% 2% 1.000 1.000 2.010 2.020 3.030 3.060 4.060 4.122 5.101 5.204 6.152 6.308 7.214 7.434 B.286 8.583 9.369 9.755 10.46 10.95 11.57 12.17 12.68 13.41 13.81 14.68 14.95 15.97 16.10 17.29 17.26 18.64 18.43 20.01 19.61 2141 20.81 22.84 22.02 24.30 23 24 25.78 24,47 27.30 25.7228.85 26 97 30.42 28.24 32.03 Future Value of Ordinary Annuity of $1 3% 4% 5% 6% 7% 8% 9% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2030 2040 2.050 2.060 2.070 2.080 2090 3.091 3.122 3.153 3.1843.215 3.246 3278 4.184 4.246 4.310 4.375 4440 4.506 4.573 5.309 5.416 5.526 5.6375.7515.867 5.985 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.662 7.898 B.142 8.394 8.654 8.9239.200 8.8929.214 9.549 9.897 10.260 10.64 11.03 10.16 10.58 11.03 11.49 11.98 12.49 13.02 11.46 12.01 12.58 13.18 13.82 14.49 15.19 12.8113.49 14.21 14.97 15.78 16.65 17.56 14.19 15.03 15.92 16.87 17.8918.98 20.14 15.62 16.63 17.71 18.88 20.14 21.50 22.95 17.09 18.2919.60 21.02 22.55 2421 26.02 18.60 20.02 21.58 23.28 25.13 27.15 29.36 20.16 21.8223.66 25.67 27.89 30.32 33.00 21.76 23.70 25.84 28.21 30.84 33.75 36.97 23.41 25.65 28.13 30.91 34.00 37.45 41.30 25.12 27.67 30.54 33.76 37.38 41.45 46.02 26 B7 29.78 33.07 36.79 41.00 45.76 51.16 28.68 31.97 35.72 39.99 44,87 50.42 56.76 30.54 34 25 38.51 43.39 49.01 55.46 62.87 32.4536.62 41.43 47.00 63.44 60.89 69.53 34 43 39.0B 44.50 50.82 58.18 66.76 76.79 36.46 41.65 47.73 54.86 63 25 73.11 B4.70 12 12% 14% 15% 1.000 1.000 1.000 2.120 2.140 2.150 3.374 3.440 3.473 4.7794.921 4.993 6.353 6.610 6.742 8.115 8.536 8.754 10.09 10.73 11.07 12.30 13.23 13.73 14.78 16.09 16.79 17.55 19.34 20.30 20.65 23.04 24.36 24.13 27.27 29.00 32.09 34.35 32.39 37.58 40.50 37.28 43.84 | 47.58 42.75 50.98 55.72 48.88 59.12 65.08 55.75 68.39 75.84 63.44 78.97 88.21 72.05 91.02 1024 81.70 104.8 1188 92.50 120.4 .137.6 104.6 138.3 159.3 1182 158.7 1842 133.3 181.9 212.8 18.53 21.38 24.52 27.98 31.77 35.95 40.54 45.60 51.16 57.28 28.03 21 71.40 79.54 88.50 98,35 25 Print Done