S12-8 (similar to) : Question Help Listed below are three lottery payout options. (Click the icon to view the lottery payout options.) Rather than compare the payout options at their present values, compare the payout options at their future value ten years from now. a. Using a 6% interest rate, what is the future value of each payout option? b. Rank your preference of payout options. c. Does computing the future value rather than the present value of the options change your preference of payout options? Explain. (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) a. Using a 6% interest rate, what is the future value of each payout option? Compute the future value of each payout option. (Round your answers to the nearest whole dollar.) Option 1: Future value =D Enter any number in the edit fields and then click Check Answer. 5 parts remaining Clear All Check Answer 0 Data Table Option 1: Option 2: Option 3: $935,000 now $151,000 at the end of each year for the next ten years $1,500,000 ten years from now Periods | 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 Future Value of $1 6% 8% 1.060 1.080 1.124 1.166 1.191 1.260 1.262 1.360 1.338 1.469 1.419 1.587 1.504 1.714 1.594 1.851 1.689 1.999 1.791 2.159 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 12% 1.120 1.254 1.405 1.574 1.762 OVO AW 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 1.340 2.436 1.265 1.316 1.369 1.423 1.480 1.407 1.477 1.551 1.629 1.710 1.796 2.826 3.278 3.803 4.411 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 2.700 3.185 3.759 4.435 5.234 2.594 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.539 1.601 1.665 1.732 1.801 1.886 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 1.980 2.079 | T | Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.7180.694 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.933 0.871 0.813 0.7600.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.914 0.837 0.766 0.703 0.645 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.135 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.8200.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.861 0.743 20 Periods 4% 20% 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 3% 1.000 2.030 3.091 4.184 5.309 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 1.000 2.200 3.640 5.368 7.442 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 | 33.066 36.786 45.762 57.275 8.286 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 26.870 9.369 10.462 11.567 12.683 13.809 14.947 16.097 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.965 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 12.169 13.412 14.680 15.974 13.486 15.026 16.627 18.292 20.024 29.778 17.293 37.280 43.842 22.019 24.297 72.052 91.025 115.380 146.628 186.688 Periods 1% 2% 3% 4% 0.990 0.980 0.971 0.962 1.970 1.942 1.9131.886 2.9412.884 2.829 2.775 3.902 3.808 3.717 3.630 4.853 4.713 4.580 4.452 5.795 5.601 5.417 5.242 6.728 6.4726.230 6.002 7.652 7.325 7.020 6.733 8.566 8.162 7.786 7.435 9.471 8.983 8.530 8.111 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 Present Value of Annuity of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 1.859 1.833 1.783 1.736 2.723 2.673 2.577 2.487 3.546 3.465 3.312 3.170 4.329 4.212 3.993 3.791 5.076 4.917 4.623 4.355 5.786 5.582 5.206 4.868 6.463 6.210 5.747 5.335 7.108 6.802 6.247 5.759 7.722 7.360 6.710 6.145 8.306 7.887 7.139 6.495 8.863 8.384 7.536 6.814 9.3948.853 7.904 7.103 9.899 9.295 7.367 10.380 9.712 8.559 7.606 12.462 | 11.470 9.818 8.514 12% 14% 0.893 0.877 1.6901.647 2.402 2.322 3.037 2.914 3.605 3.433 4.111 3.889 4.564 4.288 4.968 4.639 5.328 4.946 5.6505.216 5.938 5.453 6.194 5.660 6.424 5.842 6.002 6.811 7.469 6.623 3.685 3.498 4.039 3.812 4.344 4.078 4.607 | 4.303 4.833 4.494 5.029 4.656 5.1974.793 5.342 4.910 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 12 10.368 11.255 12.134 13.004 13.865 18.046 9.7879.253 8.760 10.575 9.954 9.385 11.348 10.635 9.986 12.106 11.296 10.563 12.849 11.938 11.118 16.351 14.877 13.590 6.628 6.142 5.575 5.929 5.092 5.353 4.675 4.870 20