payout options #____ has the highest present value using the 6% discount rate

Score: 0 of 1 pt HW Score: 11.84%, 0 3 of 7 (2 complete) E12-25A (similar to) E Question i Congratulations! You've won a state lotto! The state lottery offers you the following (after-tax) payout options: EEB (Click the icon to view the payout options.) Cick the icon to v ew the present value factor table. Click the con to view the present value annuity factor table. (Click the icon to view the future value annuity factor table.) (Click the icon to view the future value factor table) Assuming that you can earn 6% on your funds, which option would you prefer? (Round your answers to the nearest whole dollar) Calculate the present value for each payout. Option #1 Data Table Option #1: S 13.500.000 five years from now Option #2: $2.300,000 at the end of each year for the next six years Option #3: S 12.000.000 four years from now Print Done Reference Present Value of $1 10.990 090 0.971 0962 0.952 0.943 0926 0909 0893 0.877 0.862 0847 0.833 20980 0961 0943 0925 0.907 0.80.57 0.826 0797 0769 0743 0718 0.694 3 0971 0.942 0915 0889 0864 0840 0794 0751 0.712 0.675 0.641 0.609 057 4 0.961 0924 0.888 0.855 0.823 0792 0.735 0683 0.636 0.592 0552 0.516 0482 5 0951 0906 0863 822 0.784 0747 0681 0621 00.519 0476 0.437 0402 | 0.942 | 0.888 | 0.837 | 0.790 | 0.746 | 0705 | 0630 | 0.564 | 0.507 | 0456 | 0.410 | 0.370 | 0.335 7 | 0.933 | 0.371 | 0.813 | 0.760 | 0.711 | 0665 | 0583 | 0.513 | 0.452 0.400 | 0.354 | 0.314 | 0.279 8 0.923 0853 0.789 0.731 0,677 0627 0.540 0467 0404 0.351 0.305 0.266 0.233 9 0.914 0.837 0.766 0703 0.645 05920500 04240.361 0308 0.263 0225 0.194 10 0905 0820 044 0.676 0514 055 04630386 0322 0270 0227 0.191 0.162 11 0.896 0804 0.722 0650 0585 0527 0429 0.3500287 0237 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0497 0397 0.319 0257 0208 0.168 0.137 0.112 13 0879 0.773 0.681 06010530 0469 0368.20 0.229 0.182 0.145 0.116 0.093 140.8700.758 0.661 0.577 0.5050442 03400.263 0.205 0:160 0.125 0099 0.078 15 0.861 0.743 0642 555 04 0417 0.315 0239 0.183 01400108 0084 0.065 20 0.820 0730554 0456 0.377 0312 0215 0.1490104 0.073 0.051 0.037 0.026 25 0.780 0610 0478 0.375 0.295 0233 0.146 0092 0.059 0.038 0024 0.016 0.010 30 0742 0552 0412 0308 0231 0174 0099 0057 0033 002002 0.007 0004 40 0.672 0.453 0.3070.2080.142 0097 0.046 0.022 0.011 0.005 0003 0.0010.001 2 Print Done erence mntn ha 0 Future Value of $1 2%-120 400 201 ces 0%-100 201 -8% 222 001 125 Periode 53 1.020 112 23344 1.040 2%-000-001 002 104 125 140-195 210 1 250 111 400-011 2 1.020 1040 | 1061 | 1082 | 1.103 1.124 | 1.166 | 1.210 | 1.254 | 1.300 | 1.346 | 1.392 1.030 1.0511.093 1125 1.1581.1911.2601.3311.4051.48215611.643 1.041 1.082 1.126 1.170 1216 .262 1360 441.574 1689 1811 1.939 5 10511041159 121712761.338 1469 1.511 1.7621925 2100 2.288 062 1.126 1.194 1265 1340 1419 1.587 1.772 1974 2195 2436 2.700 7 | 1.072 | 1.149 | 1230 | 1.315 | 1.407 | 1.504 | 1714 | 1.949 2211 2502 | 2826 | 3.185 083 1.172 1.267 1369 14771.594 1851 2144 2476 2853 3.278 3.759 9 1.094 1.195 1305 1423 1.551 1689 1999 23582773325238034435 10 1.105 1.219 1344 1480 1.629 1791 2159 2594 3.106370744115234 11 1.116 1.243 3 5391710 1898 2332 2853 34794226 5.1176.176 12 1.127 268 1425 6011795 2012 2518 3138 3 896 4818 59367.288 13 1.138 1.294 1459 1.565 8 2133 2720 34524365492 6886 8.599 14 1.149 1.319 1513 1732 1980 2261 2937 379748876261798810.147 15 | 1161 | 1346 | 1.558 | 1.801 | 2079 2397 | 3172 | 4177 | 5474 | 7138 9266 | 11.074 20 1.220 1.486 1.806 2191 2653 3 207 4661 6727 964613.74319.461 27.393 25 1.282 1.641 2094 2666 3 385429248 10 835 17000 26 462 40.874 62669 30 1.348 1811 2427 3243 4322 5743 10063 17449 29 960 50.950 85.850 143.371 05 16 27 38 49 Print Done er any number in the edit fields and then click Check Answer parts remainin9 Clear All Check Anewer 9:59 PM Reference 01222 33344 44444 4444 Presont Value of Annuity of $1 101223 33444 44455 5555 10.990 0.980 0.971 0.962 0952 0.943 0.926 0909 0.893 0.877 0862 0.847 0.833 21.970 1942 1913 1.886 1.8591.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 3 2.941 2.884 2.829 2.775 2.723 2673 2.577 2487 2402 2322 2.246 2.174 2.106 4 | 3.902 | 3.808 | 3.717 | 3.630 | 3.546 | 3.455 | 3.312 | 3170 | 3037 | 2.914 | 2.798 | 2690 | 2.589 54.853 4.713 4580 4.4524.3294.212 3.993 3.791 3.605 3.433 3.2743.127 2.991 2 3 late 55555 65.795 5.601 5417 5.242 5.076 4917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 7 6.728 | 6.472 | 6230 | 6002 | 5786 | 5532 | 5.206 | 4868 | 4564 | 4.288 | 4.039 | 3.812 | 3.605 8 | 7.652 | 7325 | 7020 | 6733 | 6463 | .210 | 5747 | 5335 | 4963 | 4539 | 4344 | 4.078 | 3.837 9 | 8.556 | 8.152 | 7.786 | 7435 | 7 103 | .802 6.247 | 5759 | 5323 | 4.946 | 4.607 | 4.303 | 4031 10 9.471 8.933 8.530 8.111 7.722 7.360 6.710 6145 5.650 5.216 4.833 4.494 4.192 2335 n# 3 4 1110.368 9.787 9.253 8.760 8306 7.887 7.139 6495 5.938 5.453 5.029 4656 4327 12 11.255 10575 9.954 9.385 8863 8.3347536 6.814 6.1945.660 5.197 4.793 4439 13 12.134 11348 10.635 9.989394 8853 7904 7.103 6.424 5842 5.342 4.9104.533 14 13.004 12.106 11.296 10.563 9899 9.295 8244 7367 6628 6.002 5.468 5008 4.611 15 13 865 12.849 11.938 11.118 10.380 9.712 8559 7606 6.811 6.142 5.575 5.092 4.675 235 40 20 18046 16351 14.877 13590 12462 11.470 9.818 8514 7469 6.623 5929 5 353 4870 25 22023 19 523 17.413 15.622 14 094 12.783 10.675 9077 7843 673 6.097 5467 4948 30 25 808 22 396 19,600 17.292 15.372 13,76511.258 9427 8,055 7003 6,177 5517 4979 40 32 835 27.355 23.115 19.793 17.159 15 046 11.925 9779 8244 7.105 6.233 5548 4.997 4452 Print Done 44455 | 0% 3 3 443 750 45 7 23 2534 2 3 4 3 4 47 01234 1 56788 91122 6922 34 12 53 28 01234 56789 01233 18 222 Reference -x Future Value of Annuity of $1 2010 2020 2030 20402050 2060 2080 2100 2120 21402.160 2180 2200 3030 | 3.050 | 3.091 | 3.122 | 3.153 | 3184 | 3245 | 3310 | 3374 | 3440 | 3.506 | 3572 | 3540 4060 4.122 414 244310 5441 9 921 06 5.2155.368 101 04 09 541667 7 6353 16877 7.154 7442 6152 | 6308 | 468 | 6633 | 6802 | 6975 | 7335 | 7715 | 8115 | 8535 | 8977 | 9442 | 9990 7214 7434 76629 8142 8349487 10089 0.730141 2142 12916 8 286 8.583 892 9214 9549 89 10.637 1143 300 333 42405327 6499 9 369 9755 10.159 0.8311.027 11.491 2.488 39 14.776 6.085 17519 9086 20.799 10 462 10 950 2.006 257381 449 1933 21321 231 25 99 11.567 1216 1280 34642 72 6 8531 2065 23045 25.733 28755 32.150 12683 13412 14.192 5026 917 6870 8977 21384 24.133 27271 30850 34 931 39 581 13 809 1480 15618 6.62717.713 18.882 2149 24523 28.029 32089 3786 42219 48.497 14.947 15 974 17086 18.292 19.992101524.215 27.975 32.393 37.581 43.672 50818 59.19 16 097 17 293 5920024 21.579 23276 275231.772 37 280 43,842 1.660 60 965 7203s 22019 24 297 2570 29778 33.066676 45762 57275 72052 91.025 115380 146 628 186.688 28.243 32.030 35.459 41.8464777 54865 73.105 98.347 133334 18187 249 214 342 603 471.981 34.785 40.568 47.575 56.085 66 439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48886 60402 75401 95026 120 800 154.762 259 057 442 593 767 091 1342025 2360 757 4163 213 7343 858 Print Done