Present Value Computation

Kerry Bales won the state lottery and was given four choices for receiving her winnings.

Receive $$200,000$ right now.

Receive $$216,000$ in $1$ year.

Receive $$40,000$ at the end of each year for eight years.

Receive $$20,000$ at the end of each year for $30$ years.

Assuming Kerry can earn interest of $8\%$ compounded annually, $($a$)$ calculate each option and $($b$)$ determine which option Kerry should choose?

Use Excel or a financial calculator for computation. Round your answer to nearest dollar.