You have won a $$50,000$ lottery! However you have to make a choice on how you get paid. This lottery gives you two choices. One, they will pay you nothing today, but pay you $$20,000$ one year from today and $$30,000$ two years from today. Two, you could get paid $$47,000$ today. You want to get the largest amount of money from this lottery based on Present Value. You know that market interest rates for the next two years are $3\mathrm{.}75\%.$ Based on these facts which option would you choose? Show your calculations.

Hint: This requires a present value calculation to compare the two streams of money. Moreover, the equation for present value in years beyond $1$ year is:

PV $=$FV$/(1+$r$)^$n

where n is the year or years from today. Today is year $0.$