Lorraine Jackson won a lottery. She will have a choice of receiving an annuity $40,000 at the end of each year for the next 30 years, or a lump sum of $350,000 today. If she can earn a return rate of 9% on investment she makes what should she do? 1. Take the annuity because its value is less than $350,000 2.Take the annuity because its value is more than $350,000 3. Take the lump sum because its value is more than the annuity value 4. take the lump sum because its value is less than the annuity value