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 a 6% 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 future value annuity factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) a. Using a 6% 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.) Reference Future value of Option 1 Data table Option 1: Option 2: : Option 3: $945.000 now $153,000 at the end of each year for the next ten years $1,550,000 ten years from now Periods Period 1 Period 2 Period 3 Period 4 4 Period 5 Period Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Future Value of $1 1% 1 2 2% 3% 3 4% 5% 6 6% 8% 10% 12% 14% 8 % % 16% 10% 20% 18 % 1.010 1.020 1.000 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 1.166 1.210 1.254 1300 1.346 1.392 1.440 1.030 1.061 1.093 1.125 1.158 1.151 1.260 1.331 1.405 1.402 1.561 1.643 1.728 1.041 1.082 1.126 1.170 1.216 1.262 1.960 1.464 1.574 1.689 1.811 1.999 2.074 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.062 1.128 1.194 1.285 1.340 1.419 1.587 1.772 1.974 2.196 2.436 2.700 2.586 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2502 2.826 3.185 3.583 1.083 1.172 1.267 1.369 1.477 1.554 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.094 1.195 1.305 1.423 1.551 1.689 1.099 2.358 2.773 3252 3.80S 4.435 5.160 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4226 5.1176.178 7.430 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.9367.288 8.916 1.138 1.294 1.469 1.685 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.149 1.319 1.513 1.732 1.990 2.261 2.937 3.797 4.387 6261 7.988 10.147 12.839 1.161 1.346 1.568 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 1.220 1.488 1.808 2.191 2653 3.207 4.661 8.727 9.846 13.743 19.461 27.393 39.339 1.282 1.641 2.094 2.686 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.398 1.348 1.811 2.427 3.243 4.322 5.743 10.06317.449 29.900 50.950 85.250 143.371 237.376 1489 2.208 3.262 4.801 7.040 10.286 21.725 45.25993.051 188.884 378.721 750.3781,469.772 Print Done Period 20 Perlod 25 Period 30 Period 40 Help me solve this Video Get more help r Future Value of Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.153 4.310 5.526 6% 1.000 2.060 3.184 4.375 5.637 8% 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 Period 6 Period 7 Period 8 Period 9 Period 10 6.152 6.308 6.468 6.633 6.802 6.975 7.214 7.434 7.662 7.898 8.142 8.394 8.286 8.583 8.892 9.214 9.549 9.897 9.369 9.755 10.159 | 10.583 11.027 11.491 10.462 10.950 11.464 12.006 12.578 13.181 7.336 7.716 8.115 8.923 9.487 10.089 10.637 11.436 12.300 12.488 13.579 14.776 14.487 | 15.937 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 Period 11 Period 12 Period 13 Period 14 Period 15 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 13.809 14.680 15.618 16.627 | 17.713 18.882 21.495 24.523 28.029 14.94715.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 Period 20 Period 25 Period 30 Period 40 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 | 72.052 91.025 115.380 146.628 186.688 28.243 32.03036.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 34.785 40.568 47.575 56.085 66.43979.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 Present Value of $1 3% 5% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 18% 0.862 0.847 0.743 0.718 0.641 0.609 0.552 0.516 0.476 0.437 20% 0.833 0.694 0.579 0.482 0.402 Period 6 0.942 Period 7 0.933 Period 8 0.923 Period 9 0.914 Period 10 0.905 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 Period 11 0.896 Period 12 0.887 Period 13 0.879 Period 14 0.870 Period 15 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 Period 20 0.820 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.673 0.610 0.552 0.453 0.554 0.478 0.412 0.307 0.456 0.375 0.308 0.208 0.377 0.295 0.231 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0.099 0.046 0.149 0.092 0.057 0.022 0.104 0.059 0.033 0.011 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 0.037 0.016 0.007 0.001 0.026 0.010 0.004 0.001 Present Value of Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 0.990 1.970 2.941 3.902 4.853 2% 3% 4% 5% 6% 8% 10% 12% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 4.713 4.580 4.452 4.329 4.212 3.993 3.791 | 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 Period 6 Period 7 Period 8 Period 9 Period 10 5.795 6.728 7.652 8.566 9.471 5.601 5.417 5.242 6.472 6.230 6.002 7.325 | 7.020 6.733 8.162 7.786 7.435 8.983 8.530 8.111 5.076 4.917 4.623 4.355 4.111 5.786 5.5825.206 4.868 4.564 6.463 6.210 5.747 5.335 4.968 7.108 6.8026.247 5.759 5.328 7.722 7.360 6.710 6.145 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 Period 11 10.368 9.787 | 9.2538.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 | 11.296 10.563 9.899 9.295 8.244 7.3676.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.6066.811 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 Period 2018.046 16.351 14.877 13.590 12.462 | 11.470 9.818 8.514 7.469 Period 25 22.023 19.52317.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 6.623 6.873 7.003 7.105 5.929 6.097 6.177 6.233 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997