Listed below are three lottery payout options (Click the icon to view the lottery payout options) Rather than compare the payout options at their present values, compare the payout options at their future value ten years from now Using an 8% interest rate, what is the future value of each payout option? Rank your preference of payout options. Does computing the future value rather than the present value of the options change your preference of payout options? Explain. (Click the loon to view the future value factor table) (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity factor table.) (Click the icon to view the present value annuity factor table) a. Using an 8% interest rate, what is the future value of each payout option? Compute the future value of each payout option. (Round your answers to the nearest whole dollar) Future value of Option 11 Je of each payout option 1 Data table Option 1: $1,000,000 now Option 2: Option 3: $150,000 at the end of each year for the next ten years $1,750,000 ten years from now Print Done I new the t ew the p Reference Future Value of $1 trate, wh Periods Period 1 Period 2 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.010 1.020 1.030 1,040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.020 1.040 1.061 1.082 1.103 1.124 1.566 1210 1.254 1.300 1.346 1.392 1440 Bue of ead Period 3 Period 4 1 Period 5 Period 6 Period 7 1.030 1.061 1.093 1.041 1082 1.051 1.104 1.159 1.062 1.126 1.194 1.072 1.149 1.230 Period 8 1.083 1.172 1267 1.125 1.158 1.191 1.260 1331 1.405 1482 1561 1.643 1.728 1.125 1.170 1216 1.217 1.276 1.262 1.338 1.360 1.464 1.574 1.469 1.611 1.762 1.689 1925 1811 1.939 2074 2.100 2.288 2488 1.265 1.340 1.316 1.407 1.504 1.714 1.949 1.369 1477 1.594 1.419 1.587 1.772 1.974 2211 1.851 2.144 2.476 2.195 2436 2.700 2986 2.502 2826 3.185 3.583 2.853 3278 3.759 4.300 Period 1.094 1.195 1:305 1423 1551 1.689 1.999 2.358 2773 3.252 3803 4.435 5.160 Period 10 1105 1219 1.344 1.480 1629 1.791 2.159 2.594 3.106 3.707 4.411 5234 6.192 Period 11 1.116 1.243 Period 12 1.127 1.268 Period 13 1.138 1.294 1.469 1.665 Period 14 1.149 1319 1.513 1.732 Period 15 1.161 1.346 1558 1.801 Period 20 1.220 1.486 1.806 2.191 Period 25 1.282 1641 2.094 2.666 Period 30 1.348 1.811 2427 3.243 Period 40 1.489 2.208 3.262 4.801 1.384 1.539 1.710 1.898 2.332 2.853 3479 4.226 5.117 6.176 7.430 1.425 1.601 1.795 2.012 2518 3.138 3.896 4818 1.886 4.363 5.492 2.397 3.207 1.983 2.079 2653 4.661 6.727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.835 17.000 25.462 40 874 62.669 95 396 4322 5.743 10.063 17.449 29 960 50 950 85.850 143.371 237.376 7.040 10.286 21.725 45 259 93 051 188 884 378 721 750 378 1.469.772 2133 2.720 3.452 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 3.172 4.177 5474 7.138 9.266 11.974 5.936 7.288 6.886 8.599 8.916 10.699 15.407 Print Done (Click the icon to view the future (Click the icon to view the prese a. Using an 8% interest rate, what is Compute the future value of each pa Future value of Option 11 Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 1% 10% 12% 14% 10% 18% 20% Period 1 0.990 0900 0971 092 0952 0943 0826 0909 0.893 0877 0862 08470833 Period 2 0.980 0.961 0.943 0.925 0907 0800 0.857 0.826 0.797 0769 0.743 0.715 0694 Period 3 0971 0942 0915 0800 0864 0.840 0.794 0.751 0.712 0675 0641 0.009 0.579 Period 4 0961 0.924 0888 0855 0823 0792 0735 0683 0.636 0.592 0552 0516 0.482 Period 5 0.951 0.006 0.863 0822 0784 0.747 0681 0.621 0.567 0.519 0.476 0437 0.402 Period 6 0.542 0.888 0837 0.790 0746 0.705 0630 0564 0507 0.456 0410 0.370 0.335 Period 7 0.933 0871 0813 0700 0711 0665 0583 0513 0.452 0.400 0.354 0.314 0.279 Period 8 0923 0.853 0.789 0.731 0.677 0627 0.540 0467 0404 0.351 0305 0.266 0.233 Period 0914 0837 0.766 0733 0.645 0582 0.500 0424 0361 0308 0263 0225 0.194 Period 10 0.905 0.820 0.744 0676 0614 0.558 0463 0.386 0322 0.270 0227 0191 0.162 Period 11 0.896 0804 0.722 0650 0585 0.527 0429 0.350 0287 0237 0.195 0.162 0.135 Period 12 0.887 0788 0701 0625 0.557 0.497 0397 0319 0.257 0208 0168 0.137 0112 Period 13 0.879 0.773 0681 0.601 0.530 0.469 0365 0290 0229 0.182 0.145 0116 0093 Period 14 0870 0758 0661 0.577 0505 0442 0.340 0263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0743 0642 0.555 0481 0417 0315 0.239 0.183 0140 0108 0.054 0065 Period 20 0820 0673 0.554 0.456 0377 0312 0215 0143 0104 0073 0051 0037 0026 Period 25 0780 0.610 0.478 0375 0295 0233 0146 0.092 0059 0038 0024 0.016 0.010 Period 30 0742 0552 0412 0308 0231 0.174 0.099 0.057 0003 0020 0012 0.007 0.004 Period 40 0672 0453 0307 0208 0142 0.097 0048 0022 0.011 0.005 0.003 0.001 0.001 Print Done Does computing the (Click the icon to view the (Click the icon t Reference view th Future Value of Annuity of $1 a. Using an 8% interest rate Periods Period 1 Period 2 1% 2% 3% 4% 5% 1.000 1.000 2010 2020 Compute the future value of Period 3 3.030 3060 Future value of Option 1 Period 4 Period 5 Period Period 7 Period 4.060 4122 5.101 5204 Period Period Period 10 11 6% 15 10% 1000 1000 1000 1.000 1.000 1.000 1.000 2030 2040 2050 2060 2000 2.100 2120 3.091 3.122 3.153 3184 3246 3310 3374 3440 4.184 4246 4310 4375 4506 4641 4779 4921 5309 5416 5.526 5637 5867 6.105 6353 6610 6.152 6308 648 6633 6802 6975 7306 7716 8115 7214 7.434 7662 7896 8142 304 8903 9487 10 085 8.286 580 8892 9254 9549 9207 10637 11.436 12.300 9369 9755 10 159 10 583 11.027 11.491 12.488 13.579 14.775 10.462 10.350 11.464 12.006 12.578 13.181 14487 15907 17.549 12% 14% 2140 2.150 15% 20% 1.000 1.000 1.000 1.000 2.180 2.200 18% 3506 3572 3.640 5066 5.215 5.368 6877 7.154 7442 8536 10 730 8977 11.454 9442 9030 12.142 12916 13233 16.085 19.337 14.240 15327 16.499 17519 1908 20.799 21.321 23521 25.969 Period 12 Period 13 11.567 12.169 12.808 13.486 14 207 12683 13412 14.182 15.028 15.917 13.809 14.680 15618 16.627 17.713 18882 21 495 14 972 16645 18 531 20 655 23.045 25733 28.755 32.150 16.870 18977 21 304 24 133 27271 30850 34831 39581 24 523 28.029 32 099 36706 42210 48457 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 14 547 15974 17 006 16.007 17293 18.509 22.019 24.297 26 870 29.778 33 056 28.243 32.000 36 459 41 645 47.727 54.865 73.106 34.785 40.568 47.575 56 085 06439 78.058 113 283 48 588 60 402 75 401 95.00 130 800 154 762 258 057 18.292 19.599 21.015 24.215 27.975 32.393 37 581 43672 50818 59.196 20 024 21.579 23.276 27 152 35 772 37.280 43842 $1.660 00965 72035 36.786 45.762 57 275 72.052 91.025 115 380 145 628 186688 90.347 133 334 181 821 249.214 342 803 471 981 164 494 241 333 356 787 530312 790 545 1181882 442 593 767 091 1342 025 2.380 757 4.353 213 7.343 858 Print Done View the lottery payout options) Rather than compare the payout options at their present values, compare the payout options at their future value ten years from now Using an 8% interest rate, what is the future value of each payout option? Rank your preference of payout options Does computing the future w (Click the loon to view the future Click the icon to view the prese Reference 1% 2% Present Value of Annuity of $1 4% " % Using an 0% interest rate, what is Compute the future value of each p Future value of Option 1 000871 Period Periods " 10% 12% 14% 10% 18% Period 1 000 092 09520943 0286 0909 089 0.877 002 0047 0833 Period 2 1970 1942 1913 1800 1850 1833 1783 1736 1.000 1.647 Period 2941 2304 2829 2775 2723 2673 2577 247 2402 2.322 2246 Period 4 302 308 3717 3430 3546 3465 3312 3170 3037 2914 279 2000 4853 4713 450 4.452 4.309 4212 3000 371 3005 3433 3.274 3127 20% 1605 1506 1528 2174 2.106 2509 2001 5706 6001 6417 5242 5075 4917 4423 4355 4111 3800 3.665 3408 3326 6728 6472 6230 002 5700 5582 5.200 480 4564 4288 4.039 3812 3605 7.62 7.325 700 733 6463 6210 5.747 5335 4968 469 4364 407 3837 Period 8506 342 776 7435 7108 4802 6347 5750 5328 450 4607 4303 4031 Period 18 471 3 530 17.772 7300 470 4.545 540 5.218 4833 444 4192 Period 11 10 368 787 9353 700 306 7887 7139 6405 5038 5453 5029 4556 4327 Period 12 11.255 10.875 9954 385 3834 7536 6814 6134 5.000 5157 4793 44 Period 13 12.134 11 348 10835 06 Period 14 13.004 12.106 11 200 13 543 Period 25 22.023 18523 17413 Period 3025808 Period 432 835 27 30 7504 7103 6424 5842 5342 49104533 7347 6428 6002 5466 5008 46111 7.406 6311 6142 5575 5002 4475 7409 4423 509 5303 470 7343 4473 4007 S427 055 7003 6177 547 48 5517 49 779 244 7105 6233 548 4907 Print Done