E9-18 (Algo) Using Present Value Concepts for Decision Making LO 9-7 You have just won the state lottery and have two choices for collecting your winnings. You can collect $108,000 today or receive $21,300 at the end of each year for the next seven years. A financial analyst has told you that you can earn 9% on your investments. Required: 1. Calculate the present value of both the options (FV of $1, PV of $1. FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answers to nearest whole dollar.) Present Value Option 1 Option 2 2. Which alternative should you select? O Option 1 O Option 2 E9-19 (Algo) Calculating a Retirement Fund LO 9-7 You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a local bank that pays 8% annual interest. The client wants to deposit an amount that will provide her with $1,009,500 when she retires. Currently, she has $303,800 in the account. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) How much additional money should she deposit now to provide her with $1,009,500 when she retires? (Round your answer to nearest whole dollar.) Additional deposit amount E9-20 (Algo) Determining an Educational Fund LO 9-7 Judge Drago has decided to set up an educational fund for his favorite granddaughter, Emma, who will start college in one year. The judge plans to deposit an amount in a savings account that pays 7% annual interest. He wants to deposit an amount that is sufficient to permit Emma to withdraw $21,400 for tuition starting in one year and continuing each year for a total of four years. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) How much should he deposit today to provide Emma with a fund to pay for her college tuition? (Round your answer to nearest whole dollar.) Deposit amount