Exercise 5-15 (Algo) Future and present value [LO5-3, 5-7, 5-8] Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes. (1) $74,000 cash immediately. (2) $26,000 cash immediately and a six-year annual annuity of $8,300 beginning one year from today, or (3) a six-year annual annuity of $15,000 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $140,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a finencial colculator. (EV of S1, PV of S1. FVA of S1. PVA of \$1. EVAD of S1 and PVAD of S1) Complete this question by entering your answers in the tabs below. You recently won a lottery and have the option of receiving one of the following three prizes: (1) 574,000 cash immediately, (2) 526,000 cash immediately and a six-year annual annuity of 58,300 beginning one year from today, or (3) a six-year annual annuity of $15,000 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? Hote: Round your final answers to nearest whole dollar amount. Exercise 5-15 (Algo) Future and present value [LO5-3, 5-7, 5-8] Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $74,000 cash immediately. (2) $26,000 cash immediately and a soxyear annual annuity of $8,300 beginning one year from today, or (3) a six-year annual annuity of $15,000 beginning one yeat from today. Assuming an interest rate of 6% compounded annualy, determine the present value for the above options. Which option should you choose? 2 A company wants to occumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $140.000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, whot wili be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or of finencial colculator. (EV of S1. PV of S1. EVA of S1. PVA of S1. PVAD of S1 and PVAD of S1) Complete this question by entering your answers in the tabs below. A company wants to accumulate a sum of mener to cepay certain debss due in the future. The company wia make annuat compounded annually, what will be the fund balance after the Gst parment is made in ben years