Peter Smith has just won the state lottery and has the following three payout options for

afterminus?tax

prize? money:1.

$ $66,000

per year at the end of each of the next six years2.

$ $316,000

?(lump sum) now3.

$ $510,000

?(lump sum) six years from now

The annual discount rate is? 9%. Compute the present value of the third option.? (Round to nearest whole? dollar.)

Present value of? $1:

	?8%	?9%	?10%
1	0.926	0.917	0.909
2	0.857	0.842	0.826
3	0.794	0.772	0.751
4	0.735	0.708	0.683
5	0.681	0.650	0.621
6	0.630	0.596	0.564
7	0.583	0.547	0.513

A.

$104,896

B.

$ 250,000

C.

$ $101,200

D.

$ 303,960