Shelley wants to cash in her winning lottery ticket. She can either receive

$$100,000$ semiannual payments starting today for eight years, or she can

receive a single$-$amount payment today based on a $6\%$ annual interest rate.

What is the single$-$amount payment she can receive today?

Present value of an ordinary annuity of $$1$ at $6\%$ for eight periods $6\mathrm{.}20979$

Present value of an ordinary annuity of $$1$ at $3\%$ for sixteen periods $12\mathrm{.}56110$

Present value of an annuity due of $$1$ at $6\%$ for eight periods $6\mathrm{.}58238$

Present value of an annuity due of $$1$ at $3\%$ for sixteen periods $12\mathrm{.}93794$

A$)$ $$620,979$

B$)$ $$1,256,110$

C$)$ $$658,238$

D$)$ $$1,293,794$

Answer is: $$100,000$ x $12\mathrm{.}93794=$ $$1,293,794$