Question
Jane Bauer has won the lottery and has the following four options for receiving her winnings: Receive $96,000 at the beginning of the current year
Jane Bauer has won the lottery and has the following four options for receiving her winnings: Receive $96,000 at the beginning of the current year Receive $101,760 at the end of the year Receive $20,290 at the end of each year for eight years Receive $9,680 at the end of each year for 30 years Jane can invest her winnings at an interest rate of 6% compounded annually at a major bank. Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 Calculate the Present value for each of the above options. Round all answers to the nearest dollar.
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