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Superlotto offers a choice of $1,000 per week for 25 years or a lump sum payment of $720,000 now. If interest is 5.2% compounded quarterly,

Superlotto offers a choice of $1,000 per week for 25 years or a lump sum payment of $720,000 now. If interest is 5.2% compounded quarterly, determine which option should be chosen, and the economic difference between the two alternatives.

Question 16 options:

A. Weekly option - benefit of $9,516

B. Weekly option - benefit of $54,481

C. Lump sum option - benefit of $154,481

D. Lump sum option - benefit of $54,481

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