Listed below are three lottery payout options. EEB (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 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.) Future value Option 1: i Data Table $975,000 now $154,000 at the end of each year for the next ten years $1,650,000 ten years from now Option 1: Option 2: Option 3: i Reference 1 Future Value of $1 Periods! 1% 1.100 1.120 1.140 1.160 1.180 1.010 1.020 1030 1040 1050 1.060 1.080 1 2 1.020 401.061 1.082 11031124 1.166 121012541.300 1.346 1.3921.440 1.030 1.0611.125 1158 6 1331 1.4051.482 1.561 1.643 1.728 1041 1.082 11170 1.216 1.2621360 1464 1.574 1.6891811 1939 2.074 5 014 .1597 261338469 1782 125002.288488 6 10621.126 1.194 12851340 1419 15871772 1974 2.1952436 2700 2986 7 1.07249 1230 1.3161407 1504 1.71 9492.11 2502 2.8263.185 3.583 8 1.083 1.172 1267 369 47594 1851 2144 24762.853 3.278 3.759 4.300 9 1.094 1.195 1.305142355 1689 1.999 2.358 2.7733.2523.8034435 5.160 1.105 1.219 134414801629 1.791.159 2.5943.106 3074 5.234 6.192 11 1.116 1.2431.384 1.539 1.710 18982.332 2.853 3479 4.2265.117 6.176 7.430 12 1.127 1.268 1.426 1601 1.7962.01225183.1383.8964.818 5.936 7.288 8.916 1.138 | 1.294 | 1.469 | 1.665 | 1.886 | 2.133 | 2.720 | 3.452 4363 | 5492 6.886 8.599 10.699 14 | 1.149 | 1.319 | 1.513 | 1.732 | 1.980 | 2.261 | 2.937 3.797 4887 6.261 1988 || 10.147 | 12829 15 1.161 1.346 1.558 1801 2.079 2.397 3.1724.177 5.474 7.1389.266 11.97415.407 0 5 20 1.220 1.486 1.806 2.191 2653 3.207 4.661 6.727 9.64613.743946127.39338.338 1.282 1.641 2.094 2.666 3.386 4.292 6.84810.835 17.000 26.462 40.874 62.669 95.396 30 1.348 181124273.243 4322 5.743 10.063 17449 29.96050.950 85850 143.31237.376 Reference Present Value of $1 10.990 0.980 09710.962 095 0.943 0.926 0.900.893 0.8770.862 0.847 0.833 2 0.980 0.961 0.943 0.925 007089 0.857 0.826 0.797 0.769 0.743 0.718 0.694 3 0.971 0.942 0915 0.889 0864 0.840 0.794 0.750.712 0.675 0.641 0.609 0.579 4 0.961 0.92 0.888 0855 0.823 0792 0735 0.683 0636 0.592 0.552 0.516 0.482 5 0.951 0906 0863 0.822 0.784 0747 0681 06210059 0476 0.437 0402 6 0942 0.888 0837 0790 0746 0.705 0.630 0.5640.507 0456 0410 0.370 0.335 7 0.933 0.871 0813 0.760 0.710665 0.583 0.513 0452 0.400 0.354 0.314 0.279 8 0.923 0853 0.789 0.731 0677 0.627 0.540 0467 0.404 0351 0.305 0.266 0.233 9 0914 0.837 07660703 06450.52 0.500 0424 0.361 0.308 0263 0.225 0.194 10 0.905 0820 0.744 0.676 0.614 0558 046 0386 0322 0.270 0.227 0.191 0.162 11 0.896 0804 0.722 06500585 0527 0429 0.350 0287 0.237 0.195 0.162 0.135 12 0.887 0.788 0701 0.625 0.557 0497 0397 0.319 0.257 0.208 0:168 0137 0.112 13 0.879 0.773 0.681 0.6010.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0758 0.661 0.577 0.505 0442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 15 0.861 0.743 0642 0.55 0481 0417 0315 0239 .8 00 0.08 0,84 0.0 20 0.820 0.673 0.554 0456 0.377 0.312 0215 0.49 0.1040.073 0.051 0.037 0.026 25 0.780 0,610 0478 0.375 0.295 0.233 0.146 0.092 0590.038 0.024 0.016 0.010 30 0.742 0.552 0412 0.308 0.231 0.74 0099 0.057 0.0330020 0012 0.007 0.004 i Reference 1 Future Value of Annuity of $1 2 2.0102020 2.030 2.040 2050 2060 2.080 2.100 2.120 2140 2.1602.180 2.200 3.030 3.060 3.091 3.122 3.153 3.184 3.24633 3.374 3440 3.506 3.572 3.640 4 4.060 4122 4.184 4.246 3104.375 4506 4.6414779 491 5066 5.215 5.368 5 51015204 5.309 5416526 5637 8676.1056353 6106777.1547442 6 6.152 6308 668 6633 68026975 7336 7.716 8.11 8536 8.977 9.442 9.930 10.089 10.730 11.414 12.142 12.916 8 8.286 8.583 8.892 9.2149.5499.897 0.637 11436 12.300 13.233 14.240 15.327 16.499 9 9.369 9.755 10.159 10.58302741 12488 13.579 14.776 16.085 17.519 19.086 20.799 10 10462 10.950 1464 12006 12.578 13.181 14.487 15.937 1754919.337 21.321 23.521 25.959 11 11.567 12.169 12.808 13486 14.20714.972 16.645 18531 20655 23.045 25.733 28.755 32.-150 12 12.683 134124.192 15.026 15.917 16870 8.97721384 24.133 27271 30850 393 39.581 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 14.947 15.974 17.086 18.292 599 21.015 24.215 27975 32.393 37.581 3672 5081859.196 15 16.097 7293 8.599 20.024 21.579 23276 27.152 31.772 3.28043842 51.660 60.965 72035 20 22.019 24.297 26.870 29.778 33.066 36.786 45.76257.275 72.052 1025 115380 146.628 186.688 25 28.243 32.030369 41.646 47.727 54865 7310698.34 133.334 181.871 249.214 342,603 471.981 7 7.214 7.434 7.662 7.8988.1428.394 8.923 9.487 1 241.333 356.787530.312 790.948 1,181.882 40.568 47575 56.085 66439 79.058 113.283 164.494 34.785 Reference Present Value of Annuity of $1 [Periods 1% 12% 3%. I 49 1 5%, 6%,18% l 10%!12% 14%, 16%T 18% 20% 0.990 0.980 0.971 0.962 0.952 0.9430.926 0.909 0893 0.877 0.862 0.847 0.833 2 1.970 1.942 1913 1886 1859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 3 2.941 2.884 2829 2.775 2.723 2.673 2.577 2487 2.402 2.322 2.246 2.174 2.106 4 3.902 3.808 3717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 5 4.853 4.713 4.580 4.452 4.329 4.2123.993 3.791 3.605 3.433 3.274 3.127 2.991 6 5.795 5,601 5417 5242 5.076 4.917 4.623 4355 4.111 3889 3,685 3.498 3.326 7 6.728 6472 6.230 6.002 5.86 5.582 5.206 4.868 4.564 4.288 4039 3.812 3.605 8 7.652 7.325 7020 6.733 6.463 6.210 5747 5335 4968 4.639 4.344 4.078 3.837 9 8566 8.162 7.786 7435 7.1086802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 10 9.471 8.983 8.530 8.111 7.722 7.3606.710 6.145 5.650 5.216 4.833 4.494 4.192 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.3534.870 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7843 6.873 6.097 5467 4.948 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 5.517 4.979