Martha Gentry won an $18,000,000 lottery and elected to receive her winnings in 30 equal annual installments. After receiving the first 10 installments, Martha and her husband divorced, and the remaining 20 payments became part of the property settlement. The judge who presided over the divorce proceedings awarded one-half interest in the future lottery payments to Martha and the other half to her ex-husband. Following the divorce, Martha decided to sell her interest in the 20 remaining lottery payments to raise the cash needed to open a flower store. An investor has offered Martha $2,738,550. Click here to view the factor table. What discount rate did the investor use in calculating the purchase price? Discount rate Chuck has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $128,000 cash payment today. The second option is to receive $24,600 at the end of each of the next 13 years and a $21,400 lump sum payment in the 14th year. Chuck can invest money at a 6% rate. Click here to view the factor table. (a) Calculate the present value of the two options. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.) Option 2 Option 1 128000 Present value $ $ Which option should Chuck choose to receive his winnings? Option 2 (b) If Chuck could invest money at 9%, calculate the present value of the two options. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.) Option 1 Option 2 Present value $ Which option should he choose? e Textbook and Media