please solve part 2 of problem 1

TTT Problem 1 You won the state lottery on January 1, 2018. You can elect to receive (a) $1,000,000 at the end of 2019 or i Y $150,000 per year for 10 years with the first payment at the end of 2019. The interest rate is expected to be 6% for 2018 and 7% from 2019 to 2023 and 8% from 2024 onwards. How much is each option worth in present value dollars? Diferent interest rate 1. How much is option (a) worth in present value dollars? (10 points) PV(n=1, r=7%) x PV[nal,6%) x 1,000,000 = 881,683 & Multiply Pu factu af gener 2018 8 2019 tinces the sungle (93458) (94340) = 288184 (2000.000) = 881, 683 2. How much is option (b) worth in present value dollars? (10 points) 550 219,3 * 150,000 x PV(n-1, r=6%) + PVA(n=5, -8%) x 150,000 X PV -5, 7%) x PV(n=1, r=6%) = 983,065 (.07140 2018 6% -8% 19 20 21 22 23 24 25 26 27 28 7% (135,7%) (225,8%) 4. 20020 3.99 271 6.94340 3.79.289 Pu= 998,966.5 Alin PV = 615,030