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. a. Using an 8% interest rate, what is the future value of each payout option? b. Rank your preference of payout options. C. Does computing the future value rather than the present value of the options change your preference of payout options? Explain. (Click the icon 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 1 b. R C. D Data table (Cli (Cl Rather than compare the payout options at their present values, compare the payout options at their future value ten years from now. a. Using an 8% interest rate, what is the future value of each payout option? Xyout options? Explain nuity factor table.) annuity factor table.) Option 1: $1,000,000 now Option 2: $151,000 at the end of each year for the next ten years Option 3: $1,950,000 ten years from now a. Using Comput Future Print Done Reference 13 X Future Value of $1 Periods 1% 2% 3% 4% 5% Period 1 1.010 1.020 1.030 1,040 1.050 Period 2 1.020 1.040 1.061 1.082 Period 3 1.030 1.061 1.093 1.125 1.158 Period 4 1.041 1.082 1.126 1.170 1.216 Period 5 1.051 1.104 1.159 1.217 1276 6% 8% 10% 12% 14% 16% 18% 20% 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.103 1.124 1.166 1.210 1.254 1,300 1,346 1.392 1440 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.262 1.360 1.464 1.574 1.689 1.811 1.338 1.469 Period 6 1.082 1.126 1.194 1.265 1340 1.419 Period 7 1.072 1.149 1.230 1.316 1.407 2.211 1.939 2.074 1.611 1.762 1.925 2.100 2.288 1.587 1.772 1.504 1.714 1.949 2.488 1.974 2.195 2436 2.700 2.986 2,502 2.826 3.185 3.583 Period 8 1.172 1.083 1.267 1.369 1.477 1.594 1.851 2,144 2.476 2853 3.278 3.759 4,300 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1219 1.344 1.480 1.629 1.791 2.159 2594) 3.106 3.707 4.411 5.234 6 192 Period 11 1.116 1243 1.384 1.539 1.710 1.898 2332 2.853 3.479 4.226 5.117 6.176 7.430 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2518 3.138 3.896 4818 5.936 7.288 8.916 Period 13 1.138 1.294 1.469 1.665 1.888 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 Period 14 1.149 1.319 1.513 1.732 1.980 2261 2937 3797 4.887 6.261 7.988 10.147 12.839 Period 15 1.161 1.346 1.558 1.801 2079 2.397 4.177 3.172 5474 7.138 9.266 11.974 15 407 Period 20 1220 1486 1.806 2.191 2 653 3.207 4.661 6.727 9646 13.743 19 461 27 393 38.338 Period 25 1282 1841 2.094 2 BAR 3386 4.292 B 848 10 836 17 000 26 462 40 874 62 689 95.396 Print Done Rat a. b. now. Present Value of $1 C. Periods Period 1 1% 2% Period 2 Period 3 0.990 0.980 0.961 0.971 0.942 Period 4. 0.961 0.924 0.980 Period 5 0.951 0.906 Period 6 0.942 0.888 0.837 Period 7 0.933 0.871 0.813 Period 8. 0.923 0.853 0.789 a. U Period 9 0.914 0.837 Period 10 0.905 0.820 0.744 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.83 0.943 0.925 0907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.69 0.915 0.889 0.864 0840 0.794 0.751 0.712 0.675 0.641 0.609 0.57) 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 048 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0437 040 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.33 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.27 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.23 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.19 0.676 0.614 0.558 0.463 0.386 0.322 0270 0.227 0.191 0.16 plain. le.) Con Period 11 0.896 0.804 0.722 Period 12 0.887 0.788 0.701 Fut Period 13 0.879 0.773 0.681 0.601 0.650 0.585 0.527 0429 0.350 0.625 0.557 0497 0.397 0.319 0.530 0469 0.368 0.290 0.287 0.237 0.195 0.162 0.13 0257 0.208 0.168 0.137 0.11 0.229 0.182 0.145 0.116 0.09 Period 14 0 870 0.758 0.661 Period 15 0.861 0.743 0.642 Period 20 0.820 0.673 Period 25 0 780 0610 0.577 0.505 0442 0.340 0.263 0.555 0.481 0.417 0.315 0239 0.554 0.456 0.377 0.312 0215 0.149 0478 0375 0295 0233 0146 0092 0.205 0 160 0.125 0.099 0.07 0.183 0.140 0.108 0.084 0.06 0.104 0.073 0.051 0.037 0.02 0059 0038 0024 0016 001 Print Done all Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% Period 1 1.000 1.000 1.000 1.000 Period 2 2010 2020 2.030 2.040 Period 3 3.030 3.060 3.091 3.122 Period 4 4.060 Period 5 5.101 4.122 4.184 4.246 5.204 5.309 5416 Period 6 6.152 6.308 6.468 6.633 Period 7 7.214 7.434 7.662 6.975 8.394 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 Period 9 9.389 9.755 10.159 10.583 11.027 11.491 Period 10 10.462 10.950 11.464 12.006 12 578 13.181 14.487 15.937 5% 6% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3,572 3.640 4.310 4.375 4.506 4.6 4.779 4.921 5.066 5215 5.368 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 6,802 7.336 7.716 8.115 8536 8.977 9.442 9.930 7.898 8.142 8.923 9.487 10.089 10.730 11.414 12.142 12.916 10.637 11.436 12.300 13.233 14.240 15.327 16.499 12.488 13.579 14.776 16.085 17519 19.086 19.337 21.321 23.521 14% 16% 18% 20% 1.000 1.000 1.000 1.000 20.799 17.549 25.959 Period 11 11.567 12.169 12.808 13.486 14 207 14 972 16. 645 18.531 20 655 23.045 25.733 28.755 32.150 Period 12 12.683 13 412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 Period 13 13 809 14 680 15.618 16.627 17.713 18.882 21.495 24.523 28 029 32.089 36.786 42219 48 497 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32 393- 37.581 43.672 50818 59.196 Period 15 16 097 17 293 18.599 20.024 21 579 23 276 27.152 31.772 37.280 43.842 51.660 60.965 72035 Period 20 22.019 24 297 26 870 29,778 33 066 36 786 45 782 57 275 72 052 91025 115 380 146 628 186 688 Period 25 28 243 32 030 36 450 41 646 47 727 54 865 73 106 AR 347 133 334 181 871 249 214 342603 471.981 Reference - X Present Value of Annuity of $1 from now 8.162 8.983 8.530 8.111 Periods 1% Period 1 0990 Period 2 1970 Period 3 2941 Period 4 3.902 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.980 0.971 0.962 0.952 0.943 0926 0909 0.893 0.877 0.862 0.847 0833 1.942 1913 1.886 1859 1833 1.783 1736 1.690 1.647 2.884 2829 2.775 2723 2.673 2577 2487 2402 2322 3,808 3.717 3.630 3546 3465 3312 3170 3037 2914 Period 5 4.853 4.713 4.580 4.452 4.329 4212 3.903 391 3.605 Period 6 5.795 5.601 5417 5242 Period 7 6728 6.472 6230 6002 Period 8 7.652 7.325 7020 6.733 Period 9 8.506 7780 7 435 Period 10 9471 1.605 1.566 1528 2246 2.174 2106 ns? Explain 2798 2.600 2589 r table) 3433 3274 3.127 2.991 for table) 5076 4.917 4623 4.355 4.111 3 889 3.685 3.498 3.326 5.786 5.582 5200 4.868 4.564 6.463 6.210 5.747 5.335 4.968 4 288 4.030 3.812 3606 4.639 4.344 4078 3837 7.108 6.802 6.247 5.759 5.328 4940 4.607 4 303 7722 7360 6.710 6.145 5650 5.216 4.833 4031 4.494 4 102 Period 11 10.308 9.787 9.253 8 760 Period 12 11.255 10 575 9.954 9 385 8883 8.306 7887 7.139 6.495 5.938 5.453 5029 8384 7.536 6.814 6.194 5.660 5 197 4 656 4.327 4.793 4.439 Period 13 12 134 Period 14 13.004 12 106 Period 15 13.865 Period 20 18 046 Period 25 22 023 11 348 8853 10 636 9.986 9394 11 296 10.563 9 899 9 296 12.849 11.938 11.118 10.380 9712 16.351 14.877 13.590 12.462 11 470 19 523 17 413 15 622 14 094 12 783 8.559 7.904 7.103 6424 5842 5.342 8244 7 367 6628 6.002 5.468 7606 6.811 6.142 5575 5092 4675 9818 8.514 7.469 6 623 5.929 5363 4.820 6097 5467 4948 10 675 9 077 7843 8873 4.910 4.533 5008 4811