Kevin won a lottery and has a choice of the following when money is worth 7.7% compounded annually: Option 1 $49 000 per year paid at the end of each year for 7 years Option 2 $10 000 paid now, $18 000 after the second and third years, and $94 000 at the end of each of the remaining 4 years Please note, the numbers below represent a decision.

a. Calculation is within the margin of error; no decision can be made.

b. 1

c. 2