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You have won in a lottery game! You can now choose between three methods of paying out your winnings: Option 1: one-time payment of 100000
You have won in a lottery game! You can now choose between three methods of paying out your winnings:
Option 1: one-time payment of 100000
Option 2: 10 annual payments of 12000 each, the first payment is made immediately.
Option 3: 120 monthly payments of 1200 each, the first payment is made immediately.
The risk-free market interest rate is 5 percent Which one is the best option?
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