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You have just won the lottery and you can choose between the following payout options. The annual interest rate (EAR) is 10%. a) $100,000 right

You have just won the lottery and you can choose between the following payout options. The annual interest rate (EAR) is 10%. a) $100,000 right now and $60,000 every two years starting 3 years from now and ending 17 years from now (i.e., payments are at t = 0, t = 3, t = 5, ... , t = 15, t = 17). b) $60,000 a year for 25 years with the first payment one year from today (i.e., payments are at t = 1, 2, 3 ... 24, 25). c) 25 annual payments of $45,000 and a 26th payment of $299,000. The first payment is made right now, and the $299,000 payment is made one year after the last $45,000 payment. How much more is the best option worth today relative to the worst option? PLEASE SHOW FORMULAS AND WORK

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