question

payout options

Present value

Future Value

present value annuity

future value annuity

Congratulations. You've won a state lotto The state lottery offers you the following (atter-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:) (Click 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 8% on your funds, which option would you prefer? (Round your answers to the nearest whole dollar) Calculate the present value for each payout Option #1 i - x Data Table Option #1: $11,500,000 four years from now Option #2: $2.150,000 at the end of each year for the next five years Option #3: S10,500,000 three years from now Print Done Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18%20% Period 0.990 0.980 0.971 0.962 0.952 0.943 0.928 0.9090.893 0.877 0.882 0.847 0.833 11 Period 0.9800.961 0.943 0.925 0.9070.890 0.8570.828 0.7970.769 0.743 0.7180.694 2 Period 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.875 0.6410.6090.579 3 Period 0.9610.9240.888 | 0.855 0.8230.792 0.735 0.683 0.638 0.592 0.552 0.518 0.482 14 Period 0.951 0.90 0.8630.822 0.784 0.747 0.6810.621 0.587 0.519 0.478 0.437 0.402 5 Period 0.9420.888 0.837 0.790 0.7480.705 0.630 0.564 0.507 0.458 0.4100.370 0.335 16 Period 0.933 0.871 0.813 0.750 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.3140.279 17 Period 0.923 0.853 0.789 0.731 0.6770.627 0.540 0.467 0.4040.3510.305 0.268 0.233 18 Period 0.914 0.837 0.7680.7030.845 0.592 0.500 0.424 0.3810.308 0.263 0.225 0.194 19 Period 0.905 0.820 0.744 0.678 0.614 0.558 0.4630.383 0.322 0.270 0.227 0.191 0.182 10 Period 0.89 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.19 0.162 0.135 111 Period 0.887 0.788 0.7010.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 12 Period 0.879 0.773 0.6810.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 13 Period 0.8700.758 0.6610.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 14 Period 0.861 0.743 0.642 0.555 0.4810.417 0.315 0.239 0.183 0.140 0.1080.084 0.065 15 Period 0.820 0.673 0.5540.458 0.377/0.312 0.215 0.14 0.104 0.073 0.051 0.037 0.026 20 Period 0.7800.810 0.478 0.375 0.295 0.23 0.14 0.092 0.05 0.038 0.024 0.0180.010 125 Period 0.742 0.562 0.412 0.308 0.231 0.1740.09 0.057 0.033 0.0200.0120.007 0.004 30 Period 0.672 0.453 0.307 0.208 0.1420.097 0.048 0.022 0.0110.005 0.003 0.001 0.001 140 Print Done Reference - X Future Value of 51 Periods 1% 2% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.010 1.020 1.000 1.040 1.050 1.080 1.080 1.100 1.120 1.140 1.100 1.180 1.200 Period 21.02010401.061 1.0821.103 1.1241.1661.210 1.254 1.300 1.348 1.392 1.440 Period 31.0301.0011.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.581 1.843 1.728 Period 4 1.041 1.0821.128 1.170 1.210 1.262 1.360 1.4841.574 1.6891.811 1.939 2.074 Period 51.0511.104 1.159 1.217 1.278 1.338 1.469 1.811 1.762 1.925 2.100 2288 2.488 Period 61.052 1.128 1.194 1.265 1.3401.419 1.587 1.772 1.9742.195 2.436 2.700 2.988 Period 71.072 1.1491 2301.316 1.407 1.504 1.714 1.949 2211 2.502 2.828 3.185 3.583 Period 81.083 1.1721.287 1.389 1.477 1.5941.851 2.144 2.478 2.853 3.278 3.759 4.300 Period 91.094 1.1951.305 1.423 1.551 1.889 1.999 2.358 2.773 3 252 3.803 4.435 5.180 Period 1.1051219 1.344 1.480 1.629 1.791 2.159 2.594 3.108 3.707 4.411 5234 6.192 10 Period 1.1161 2431.384 1.539 1.7101.898 2.332 2.853 3.479 4.226 5.1176.178 7.430 11 Period 1.1271 2681.4281.601 1.7902.012 2.5183.138 3.896 4.818 5.9387 288 8.916 12 Period 1.1381 2941.469 1.8651.886 2.133 2.720 3.452 4.363 5.4928.8888.599 10.699 13 Period 1.1491.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6261 8.2017.988 10.147 12.839 14 Period 1.1611.348 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.1389.268 11.974 15.407 15 Period 1.220 1.4881.800 2.1912.653 3.207 4.6616.727 9.848 13.743 19.481 27.393 38.338 20 Period 1 28218412.094 2.668 3.388 4.292 6.848 10.83517.000 28.462 40.874 82.662 95.396 25 Period 1.348 1.811 2.427 3.243 4.322 5.743 10.06317.449 29.960 50.950 85.850 143.371 237.378 30 Period 1.489 2 2083.282 4.801 7.040 10.28821.725 45.25993.051188.884378.721 750.3781.469.772|| 40 Print Done - Reference Present Value of Annuity of $1 Periods 1% 2% 5% 6% 8% 10% 12% 14% 16% 18%20% Period 0.990 0.980 0.971 0.982 0.952 0.943 0.828 0.909 0.893 0.877 0.862 0.847 0.833 11 Period 1.970 1.942 1.913 1.8881.8591.833 1.783 1.736 1.6901.847 1.605 1.588 1.528 2 Period 2.9412.884 2.8292.775 2.723 2.673 2.577 2.487 2.402 2.322 2.248 2.174/2.108 3 Period 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.1703.037 2.914 2.798 2.8902.589 14 Period 4.853 4713 4.580 4.452 4.329 4.212 3.9933.791 3.605 3.433 3.2743.127 2.991 15 Period 5.795 5.601 5.417 5.242 5.078 4.917 4.623 4 355 4.111 3.8893.885 3.498 3.326 16 Period 6.7288.472 6.230 8.0025.7885.582 5.2084.868 4.584 4.288 4.0393.812 3.605 Period 7.852 7.3257.020 8.733 8.463 6.210 5.747 5.335 4.988 4.639 4344 4.078 3.837 8 Period 8.568 8. 1827.788 7.435 7.108 6.802 6.247 5.750 5.328 4.948 4.807 4.303 4.031 9 Period 9.471 8.9838.530 8.1117.722 7.360 6.710 6.145 5.850 5.216 4.833 4.494 4.192 10 Period 10.388 9.787 9.253 8.7808.3067.887 7.1396.495 5.938 5.4535.020 4.656 4.327 11 Period 11.255 10.576 9.954 9.3858.883 3.384 7.5386.8148.1945.860 5.1974.793 4.439 12 Period 12. 13411.348 10.635 9.988 9.3948.8537.9047.1038.424 5.842 5.342| 4.910 4.533 13 Period 13.00412.108 11 290 10.5689.899 9.295 8.2447.3676.628 6.002 5.488 5.008 4.611 14 Period 13.885 12.84 11.93811.118 10.380 9.7128.5597.806 6.811 6.142 5.575 5.092 4.875 15 Period 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.5147.489 6.623 5.929 5.353 4.870 20 Period 22.02319.523 17.41315.622 14.09412.783 10.6769.077 7.8436.873 6.097 5.467 4.948 |25 Period 25.808|22.39 19.800 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 30 Period 32.835|27.355 23. 115 19.793 17.15 15.046 11.925 9.7798.244 7.105 6.233 5.548 4.997 140 Print Done Reference 6% 1.000 10% 12% 1.000 1.000 1.000 14% 1.000 16% 1.000 18% 1.000 20% 1.000 2.080 2.080 2.100 2.120 2.140 2. 160 2.180 2.200 Periods 1% 296 3% 4% 5% Period 1.000 1.000 1.000 1.000 1.000 1 Period 2.010 2.020 2030 2040 2.050 2 Period 3.0303.0603.091 3.122 3.153 3 Period 4.060 4.122 4.1844.248 4310 4 Period 5.101 5.204 5.309 5.416 5.526 5 3.184 3.240 3.310 3.374 3.440 3.506 3.572 3.640 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.637 5.867 6.105 6.353 8.810 6.877 7.154 7.442 8.538 8.977 9.442 9.930 10.730 11.414 12.142 12.916 13.233 14.240 Period 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8. 115 6 Period 2147.4347.6627.898 8.142 8.394 8.923 9.487 10.089 17 Period 8.286 8.5838.8929.214 9.549 9.897 10.637 11.436 12.300 18 Period 9.369 9.755 10.159 10.583 11.027 11.491 | 12.488 13.579 14.778 19 Period 10.462 10.950 11.464 12.000 12.578 13.181 14.48715.937 17.549 10 15.327 18.499 18.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 Period 11.567 12.169 12.80813.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 11 Period 12.68313.412 14.192 15.020 15.917 16.870 18.97721.384 24.133 27.271 30.850 34.931 39.581 12 Period 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 38.786 42.219 48.497 13 Period 14.94715.97417.086 18.292 19.599 21.015 24 215 27.975 32.393 37.581 43.672 50.818 59.198 14 Period 16.097|17.29318.59920.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 15 Period 22.019 24.29726.87029.778 33.000 36.786 45.762 57.275 72.052 91.025 115.380 148.628186.688 20 Period 28.243|32.030 36.459 41.646 47.72754.885 73.106 98.347 133.334 181.871 249.214 342.603 471.981 25 Period 34.785 40.588 47.57556.085 66.439 79.058 113.283 164.494241.333 356.787 530.312790.948 1,181.882 30 Period 48.886|30.40275.40 105.026120.800 154.762259.057 442.593767.091/1,342.025 2.360.757 4,163.2137.343.85 Print Done