Jesse has just learned that she won $1 million in her state lottery. She has the choice of receiving a lump-sum payment of

$447,917

or

$50,000

per year for the next 20 years. Jesse can invest the lump sum at

11%,

or she can invest the annual payments at

9%

per year. Which should she choose for the greatest return after 20 years?(Use the Financial Tables in

Appendix C

in computing youranswer.)

If Jesse choose the lump-sum option, after 20 years she would have=$

(Round to the nearest cent.)If Jesse choose the annual payment option, after 20 years she would have=$

(Round to the nearestcent.)

Which should she choose for the greatest return after 20 years?(Select the best answer below.)

A.

Jesse should choose the

lumpsum

option since it has a future value in

20

years greater than she would have with the

annual payment

option.

B.

Jesse should choose either option since the future value in

20

years is equal for both.

C.

Jesse should choose the

annual payment

option since it has a future value in

20

years greater than she would have with the

lumpsum

option..