please help!

Value of an annuity versus a single amount Personal Finance Problem Assume that you just won the state lottery. Your prize can be taken either in the form of $62,000 at the end of each of the next 30 years (that is, $1,860,000 over 30 years) or as a single amount of $1,248,000 paid immediately. a. If you expect to earn 5% annually on your investments over the next 30 years, ignoring taxes and other considerations, which alternative should you take? Why? b. Would your decision in part a change if you could earn 7% rather than 5% on your investments over the next 30 years? Why? c. At approximately what interest rate would you be indifferent between the two options? a. To decide which alternative to tako, you need to compare the values of these alternatives. Although the total nominal dolar amount of the annuity is much larger than the single payment, the former is not necessarily a better choice due to the different timing of cash flows. A way to make a meaningful comparison of the two alternatives is to compare their present values. If you take the prize as an annuity, the presont value of the 30-year ordinary annulty in $. (Round to the nearest cont.) If you take the prize as a single amount, the present value of the lump sum is $. (Round to the nearest dollar.) Which alternative should be chosen? (Select the best answer below.) O Annual payments, because the present value is greater O Lump sum, because the present value is greater b. If you earned 7% rather than 5% on your investments, the prosent value of the 30-year ordinary annuilty (). (Round to the nearest cont.) Which alternative should be chosen? (Select the best answer below.) O lump sum, because the present value is greater Annual payments, because the present value is greater, c. On a strictly economic basis, the rate at which you would be indifferent between the two plans is % (Round to two decimal places.) Click to select your answer(s)