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Option #1 Option #2 Option #3: Data table Option #1: $13,000,000 six years from now Option #2 $2,150,000 at the end of each year for

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Option \#1 Option \#2 Option \#3: Data table Option \#1: $13,000,000 six years from now Option \#2 $2,150,000 at the end of each year for the next five years Option #3:$10,500,000 three years from now Congratulationsl You've won a state lottol The state lotfery offers you the following (affer-tax) payout options: Click the icon to view the payout options.) (Click the icon to view the present value factor table) (Click the icon to view the present value annuity factor table) (Chick the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table) Requirement Assuming that you can earn 10% on your funds, which option would you prefer? (Round your answers to the nearest whole dollar) Calculate the present value for each payout. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{ Present Value of $1} & \multirow{2}{*}{12%} & \multirow[b]{2}{*}{14%} & \multirow[b]{2}{*}{16%} & \multirow[b]{2}{*}{18%} & \multirow[b]{2}{*}{20%} \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & & & & & \\ \hline Period 1 & 0.990 & 0.980 & 0.971 & 0.962 & 0.952 & 0.943 & 0.926 & 0.909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 \\ \hline Period 2 & 0.980 & 0.961 & 0.943 & 0.925 & 0.907 & 0.890 & 0.857 & 0.826 & 0.797 & 0769 & 0.743 & 0.718 & 0694 \\ \hline Period 3 & 0.971 & 0.942 & 0.915 & 0.889 & 0.864 & 0.840 & 0.794 & 0.751 & 0.712 & 0.675 & 0.641 & 0.609 & 0.579 \\ \hline Period 4 & 0.961 & 0.924 & 0.888 & 0.855 & 0.823 & 0.792 & 0.735 & 0.683 & 0.636 & 0.592 & 0.552 & 0.516 & 0.482 \\ \hline Period 5 & 0.951 & 0.906 & 0.863 & 0.822 & 0.784 & 0.747 & 0.681 & 0.621 & 0.567 & 0.519 & 0.476 & 0.437 & 0.402 \\ \hline Period 6 & 0.942 & 0.888 & 0.837 & 0.790 & 0.746 & 0.705 & 0.630 & 0.564 & 0.507 & 0.456 & 0.410 & 0.370 & 0.335 \\ \hline Period 7 & 0.933 & 0.871 & 0.813 & 0.760 & 0.711 & 0.665 & 0.583 & 0.513 & 0.452 & 0.400 & 0.354 & 0.314 & 0.279 \\ \hline Period 8 & 0.923 & 0.853 & 0.789 & 0.731 & 0.677 & 0.627 & 0.540 & 0.467 & 0.404 & 0.351 & 0.305 & 0.266 & 0.233 \\ \hline Period 9 & 0.914 & 0.837 & 0.766 & 0.703 & 0.645 & 0.592 & 0.500 & 0.424 & 0.361 & 0.308 & 0.263 & 0.225 & 0.194 \\ \hline Period 10 & 0.905 & 0.820 & 0.744 & 0.676 & 0614 & 0.558 & 0.463 & 0.386 & 0.322 & 0.270 & 0.227 & 0.191 & 0.162 \\ \hline Period 11 & 0.896 & 0.804 & 0.722 & 0.650 & 0.585 & 27 & 8 & 0.350 & 87 & 37 & 95 & 0.162 & 0.135 \\ \hline Period 12 & 0.887 & 0.788 & 0701 & 0.625 & 0.557 & 0.497 & 0.397 & 0.319 & 0.257 & 0.208 & 0.168 & 0.137 & 0.112 \\ \hline Period 13 & 0.879 & 0.773 & 0.681 & 0.601 & 0.530 & 0.469 & 0.368 & 0.290 & 0229 & 0.182 & 0.145 & 0.116 & 0.093 \\ \hline Period 14 & 0.870 & 0.758 & 0.661 & 0577 & 0.505 & 0.442 & 0.340 & 0.263 & 0.205 & 0.160 & 0.125 & 0.099 & 0.078 \\ \hline Period 15 & 0.861 & 0.743 & 0.642 & 0.555 & 0.481 & 0.417 & 0.3 & 0239 & B3 & 40 & 8 & 84 & 0.065 \\ \hline Period 20 & 0.820 & 0.673 & 0.554 & 0.456 & 0.377 & 0.312 & 0.215 & 0.149 & 0.104 & 0.073 & 0.051 & 0.037 & 0026 \\ \hline Period 25 & 0.780 & 0610 & 0.478 & 0.375 & 0.295 & 0.233 & 0.146 & 0.092 & 0.059 & 0.038 & 0024 & 0016 & 0.010 \\ \hline Period 30 & 0.742 & 0.552 & 0.412 & 0308 & 0.231 & 0.174 & 0.099 & 0057 & 0.033 & 0.020 & 0.012 & 0.007 & 0.004 \\ \hline Period 40 & 0.672 & 0.453 & 0.307 & 0.208 & 0.142 & 0.097 & 0.046 & 0.022 & 0.011 & 0.005 & 0.003 & 0.001 & 0.001 \\ \hline \end{tabular} Reference \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{|c|} \\ Periods \\ \end{tabular}} & \multicolumn{13}{|c|}{ Future Value of Annuity of \$1 } \\ \hline & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline Period 1 & 1.000 & 1000 & 1000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1000 \\ \hline Period 2 & 2.010 & 2020 & 2030 & 2.040 & 2.050 & 2.060 & 2080 & 2100 & 2.120 & 2.140 & 2.160 & 2.180 & 2200 \\ \hline Period 3 & 3.030 & 3.060 & 3.091 & 3.122 & 3.153 & 3.184 & 3.246 & 3.310 & 3.374 & 3.440 & 3.506 & 3.572 & 3.640 \\ \hline Period 4 & 4060 & 4.122 & 4.184 & 4.246 & 4.310 & 4.375 & 4.506 & 4641 & 4.779 & 4.921 & 5.066 & 5.215 & 5.368 \\ \hline Period 5 & 5.101 & 5.204 & 5.309 & 5.416 & 5.526 & 5.637 & 5.867 & 6.105 & 6.353 & 6.610 & 6877 & 7.154 & 7.442 \\ \hline Period 6 & 6.152 & 6308 & 6.468 & 6.633 & 6.802 & 6.975 & 7.336 & 7.716 & 8.115 & 8536 & 8977 & 9.442 & 9930 \\ \hline Period 7 & 7.214 & 7.434 & 7.662 & 7.898 & 8.142 & 8.394 & 8923 & 9.487 & 10.089 & 10.730 & 11.414 & 12142 & 12916 \\ \hline Period 8 & 8.286 & 8.583 & 8.892 & 9.214 & 9.549 & 9.897 & 10.637 & 11436 & 12300 & 13.233 & 14.240 & 15.327 & 16.499 \\ \hline Period 9 & 9.369 & 9.755 & 10.159 & 10.583 & 11.027 & 11.491 & 12.488 & 13579 & 14.776 & 16.085 & 17519 & 19086 & 20799 \\ \hline Period 10 & 10.462 & 10950 & 11.464 & 12.006 & 12578 & 13.181 & 14.487 & 15.937 & 17.549 & 19.337 & 21.321 & 23.521 & 25.959 \\ \hline Period 11 & 11.567 & 12.169 & 12808 & 13.486 & 14.207 & 14972 & 16645 & 18.531 & 20.655 & 23.045 & 25.733 & 28.755 & 32.150 \\ \hline Period 12 & 12683 & 13.412 & 14.192 & 15026 & 15.917 & 16.870 & 18977 & 21.384 & 24.133 & 27.271 & 30.850 & 34.931 & 39.581 \\ \hline Period 13 & 13809 & 14.680 & 15.618 & 16627 & 17713 & 18.882 & 21.495 & 24.523 & 28.029 & 32089 & 36.786 & 42219 & 48497 \\ \hline Period 14 & 14.947 & 15.974 & 17.085 & 18.292 & 19.599 & 21.015 & 24.215 & 27.975 & 32.393 & 37.581 & 43.672 & 50.818 & 59.196 \\ \hline Period 15 & 16.097 & 17293 & 18599 & 20024 & 21.579 & 23.276 & 27.152 & 31772 & 37.280 & 43.842 & 51.660 & 60.965 & 72.035 \\ \hline Period 20 & 22019 & 24.297 & 26.870 & 29778 & 33.066 & 36.786 & 45.762 & 57.275 & 72.052 & 91.025 & 115.380 & 146628 & 186.688 \\ \hline Period 25 & 28.243 & 32.030 & 36.459 & 41646 & 47.727 & 54.865 & 73,106 & 98.347 & 133.334 & 181871 & 249214 & 342603 & 471981 \\ \hline Period 30 & 34785 & 40568 & 47.575 & 56.085 & 66.439 & 79058 & 113.283 & 164.494 & 241.333 & 356.787 & 530.312 & 790948 & 1,181,882 \\ \hline Period 40 & 48.886 & 60.402 & 75401 & 95.026 & 120800 & 154.762 & 250057 & 442.593 & 767.091 & 1,342,025 & 2.360 .757 & 4,163213 & 7,343858 \\ \hline \end{tabular}

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