Congratulations are in order!!!! You have just been advised by Loto-Qubec that you won the lottery jackpot of ( $ 1,000,000 ) !! You know however to read the fine print and after doing so, you realize that you must choose how you will accept this payment under two options:: 1. Accept the ( $ 1,000,000 ) over 20 years ( ($ 50,000 ) per year); or, 2. Take a lump-sum payment of ( $ 750,000 ) You know that you could invest at ( 6 % ) compounded monthly. You assume that this rate won't change over 20 years. Which would be the highest-paying option? Select one: a. Take the lump sum of ( $ 750,000 ) as it will provide a future value of ( $ 2,582,421 ) b. Take the lump sum of ( $ 750,000 ) as it will provide a difference in future value of ( $ 609,853 ) ov the ( $ 1,000,000 ) option with payout over 20 years c. Take the ( $ 1,000,000 ) option with payout over 20 years as it will provide a future value of ( $ 1,872,800 ) d. It does not matter which option you select as both options are equivalent e. Take the ( $ 1,000,000 ) option with payout over 20 years as it will provide a future value of ( $ 2,582,421 )

Congratulations are in order!!!! You have just been advised by Loto-Qubec that you won the lottery jackpot of $1,000,000 !!! You know however to read the fine print and after doing so, you realize that you must choose how you will accept this payment under two options:: 1. Accept the $1,000,000 over 20 years ($50,000 per year); or, 2. Take a lump-sum payment of $750,000 You know that you could invest at 6% compounded monthly. You assume that this rate won't change over 20 years. Which would be the highest-paying option? Select one: a. Take the lump sum of $750,000 as it will provide a future value of $2,582,421 b. Take the lump sum of $750,000 as it will provide a difference in future value of $609,853 ov the $1,000,000 option with payout over 20 years c. Take the $1,000,000 option with payout over 20 years as it will provide a future value of $1,872,800 d. It does not matter which option you select as both options are equivalent e. Take the $1,000,000 option with payout over 20 years as it will provide a future value of $2,582,421