You have won the Irish Sweepstakes. The interest rate is 14.73%.You are given two options on how to receive the payout. Whichshould you select?

1. 1) Option A:
   $100,000 in 1 year

   $200,000 in 3 years $300,000 in 5 years

2. 2) Option B:
   $1,000,000 in 10 years

   $2,000,000 in 30 years $30,000,000 in 50 years

a. Both Options are worth the same amount in present valueterms, so it doesn’t matter which you choose.
b. Select Option A: It is worth $53,897.84 more in present valueterms.
c. Select Option B: It is worth $109,613.52 more in present valueterms.

d. Select Option B: It is worth $32,400,000.00 more in presentvalue terms.