Please show all work associated with the problem.

1. You have just won the state lottery and have two choices for collecting your winnings. You can collect $500,000 (Option 1) today or receive $100,000 (Option 2) per year for the next five years. A financial analyst has told you that you can earn 6% on your investments. To maximize your payout, which option would be the better choice? Assume that periodic payments would be made at the end of each year. Show your work