Tim Dodson won the lottery, the full amount of the prize is $18,600 (Lets assume this is tax-exempt). The annual interest rate is 15.8%. He can choose to receive the prize in two ways: 1) receive half of the full amount now and nothing else in the future. 2) receive the full amount in five payments ($3,720 each payment). He receives his first payment beginning now. What is the present value if he chooses the first way? (Round to the nearest dollar.)

1. 18,600
2. 9,300
3. 16,062
4. 8,031
5. None of the above

If he chooses to choose to the second way, how much is the present value of prize?

A) 2395.6

B) 2774.1

C) 12,102.1

D) 10,450.9

E) None of the above