how to solve using a financial calculator and timeline. I understand how to calculate the PV in my calculator of the 12 payments but I don't understand why it has to be compounded an additional year to get to $124,416

Your roommate bought you a lottery ticket before you went home for spring break. You come back to school and receive an email ling you that you have a winning ticket. You are given three choices-the choices are 1) a lump sum payment today of $120,000, 2) $240,000 twelve years from now, or 3) twelve annual payments of $14,000 beginning today. If the interest rate is 6%, which would you prefer? A) The $120,000 now B) The $241,460 twelve years from now C) The twelve $14,000 annual payments beginning today 240,000 twelve years from now