Listed below are three lottery payout options.

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(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

ninenine

years from now.

a.	Using aa 66% 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.

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(Click the icon to view the future value factor table.)

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(Click the icon to view the future value annuity factor table.)

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(Click the icon to view the present value factor table.)

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(Click the icon to view the present value annuity factor table.)

a. Using

aa

66%

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:	=

Data Table $975,000 now Option 1: $153,000 at the end of each year for the next nine years Option 2: Option 3: $1,500,000 nine years from now Print Done