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Q 8 0 . You recently wan a lattery and have the option of recelving one of the lollowing three prizes: ( 1 ) $

Q80. You recently wan a lattery and have the option of recelving one of the lollowing three prizes: (1) $100.000 cash immediately. (2) $35.000 cash immediately and a six-year annual annuty of $14.000 beginning one year from coday, or (3) a slx-year annual annuity of $20.000 beginning loday.
Required: Assuming an interesi sare of 6% compounded annually, determine the present value for the above options. Which option shauld you choose?
\table[[,\table[[Future],[Vaiue of 1]],\table[[Present],[Value of 1]],\table[[Future value],[oftan],[ordinary],[annuity]],\table[[Presene value],[of an ardinary],[annuity]],\table[[Present value],[af an annuity],[due]],1],[6,1.41852,0.70496,0.9753,4.91732,5.21236,6%
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