Justin won the lottery and was given a choice as to how to receive the funds. He has come to you for advice as he does not know how to compare the two scenarios. Comparing the two today (PV), which scenario would result in the larger payout?

Scenario 1:Justin could receive a lump sum of $500,000 today.

Or

Scenario 2:Justin could receive $70,000 today plus $5,500 paid at the end of each month for the next 8 years, with an interest rate of 4.5% compounded semi-annually.

a)Which scenario should Justin select based solely on the highest payout?