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 nine 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 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 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 $ 1,879,060 i Data Table Option 1: Option 2: - = Option 1 Option 2 Option 3: $940,000 now $154,000 at the end of each year for the next nine years $1,500,000 nine years from now Enter any number in the edit fields and then click Chary Ane Print Done Future Value of $1 Periods 1.020 1.100 1210 1.010 1.020 1.030 1.041 1.040 1.061 1.082 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.061 1.062 1.072 1.126 119 1.407 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 1.172 1.477 3% 1.030 1.061 1.093 1.128 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2427 3.262 1.551 6% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 3.207 4.292 5.743 10.286 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 1.629 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4226 4.818 5492 6.261 7.138 13.743 26.462 5 0.950 188.884 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4435 5.234 6.176 7.288 8.599 10.147 11.974 27.393 62.669 143.371 750.378 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.208 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 5.117 5.936 6.886 7.988 9.266 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4 801 19.461 40.874 85.850 378.721 7.040 0 Present Value of $1 Podod | | | | % 1 % 1% 16%) 20 0.990 0.960 0.97 | 0.962 0.952 0.943 | 0.926 | 0.909 | 0.693 | 0.87 0.962 | 0.947 | | 0.833 1980 0.961 | 0.943 | 0.925 - 0.907 0.860 | 0.857 0.826 0.797 | 0.768 | 10.743 0.716 0.694 0.94 - 0.942 | 0.915 0.88 0.664 0.840 - | 0.794 10.751 0.742 0.675 0.641 | 0.609 0.579 0.961 | 0.924 0.886 0.85 0.623 | 0.792 0.735 10.663 0.636 . 52 0.5521 0.516 0.482 .9511 | 0.906 0.863 0.822 A.784 | 0.747 0.66] 0.621 | 0.567 10.5191 0.476 | 0.437 0.402 0942 | 0.888 | 0.837 0.79 0.746 0.705 0.630 0.54 0.507 0.48 0.410 0.370 0.335 6.93 | 0.871 | 0.813 0760 0.741 | 0.665 0.583 0.513 | 0.452 | 0.400 0279 6.923 | 0.853 | 0.789 | 0.731 10.677 | 0.627 0.540 10.467 | 0.404 0.351 0.233 0.914 0.837 | 0.76 10.703 0.645 10.502 0.500 0.424 10.361 0.308 - 0.25% 0.194 0.905 0.820 | 0744 0.676 | 0.614 10.558 10.366 0.322 0.270 0227 09 0.162 0.696 - 0.804 0.722 0.585 | 0.527 | 0.350 0.287 0.237 0.195 0.162 0.135 0.87 0.76% 0.701 0.6250557 | 0497 0.3970.319 | 0.257 0208 0.166 0.137 0.12 0379 | 0.7730 61 0.530 10.469 036 - 0290 0.182 | 0.145 0.116 a093 0.870 0.758 0.661 | 650.505 | 0442 0263 0.205 10 10.125 | 0.099 0.078 6.66] 0.745 0.642 0.555 | 0.4610417 0239 10.1 0140 0.106 0.084 0.065 0.820 0.673 | 0.554 0.456 | 0.37 | 0.312 | 0215 0.149 | 0.104 | 0.073 0.051 0.037 0.025 0.780 | 0.610 0.476 - 0.375 | 0.295 | 0.233 | 0.146 | 0.092 10.059 | 0.036 | 0.024 | 0.016 10.010 | 30 1023110.174 0.099 0.05 0.033 0.020 0.012 | 0.00T .672 10.453 | 0.307 0.208 10.142 | 0.097 0.046 | 0.022 10011 loop50003 0.001 0001 0.463 2650 456789mH20 6729 Periods 6% 8% 12% 20% 1% 1.000 2.010 3.030 14% 1.000 2.140 3.440 4.921 6.610 4.080 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 2% 1.000 2.020 3.060 4.122 5.204 6.308 7434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 Future Value of Annulty of $1 10% 1.000 1.000 1.000 1.000 1.000 1.000 2.030 2.040 2.050 2.060 2.080 2.100 3.091 3.122 3.153 3.184 3.246 3.310 4.184 4.246 4.310 4.375 4.506 4.641 5.309 5.416 5.526 5.637 5.867 6.105 6.468 6.633 6.802 6.975 7.336 7.716 7.662 7.898 8.142 8.394 8.923 9.487 8.892 9.214 9.549 9.897 10.637 11.436 10.159 10.583 11.027 11491 12.488 13.579 11464 12.006 12.578 | 13.181 14.487 15.937 12.808 13.486 14.207 14.972 16.645 18.531 14.192 15.026 15.917 16.870 18.977 21.384 15.618 16.627 17.713 18.882 21.495 24.523 17.086 18.292 19.599 21.015 24.215 27.975 18.599 20.024 21.579 23.276 27.152 31.772 26.870 29.778 33.066 36.786 45.762 57.275 36.459 41.646 | 47.727 54.865 73.106 98.347 47.57556.085 66.439 7 9.058 113.283 164.494 75.401 95.026 120.800 154.762259.057 442.593 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.656 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 8.536 10.730 13.233 16.085 19.337 23.045 27 271 32.089 37.581 43.842 91.025 181.871 356.787 1,342.025 16% 1.000 2.160 3.506 5.066 6.877 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 115.380 249.214 530.312 2,360.757 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.086 23.521 28.756 34.931 42.219 50.818 60.965 146.628 342.603 790.948 4,163.213 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 186.688 471.981 1,181.882 7,343.858 Periods Present Value of Annulty of $1 3% 4% 5% 6% Z 8% 12% 10% 14% 16% 18% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.847 0.862 1.942 1.970 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2487 2.402 2.322 2.246 2.174 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.8893.685 3.498 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.9464.607 4.303 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 11.255 10.575 9.954 | 9.385 8.863 8.384 7.536 6.814 6.1945.660 5.197 4.793 12.134 11.348 10.635 9.9869.3948.853 7.904 7.103 6.424 5.842 5.342 4.910 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.008 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 18.046 16.351 14.877 13.590 12.462 | 11.470 9.818 8.514 7.4696.623 5.929 5.353 22.023 19.523 17.413 15.622 14.094 12.783 | 10.675 9.077 7.8436.873 6.097 5.467 25.808 22.396 19.600 17.292 15.372 13.765 11.2589.4278.055 7.003 6.1775.517 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 5.548 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 .192 533 1.997