You recently won a lottery and have the option of receiving one of the following...
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You recently won a lottery and have the option of receiving one of the following three prizes: (1) $94,000 cash immediately, (2) $38,000 cash immediately and a six-year annual annuity of $9,700 beginning one year from today, or (3) a six-year annual annuity of $19,600 beginning one year from today. Assuming an interest rate of 7% compounded annually, determine the present value for the above options. Which option should you choose? Note: Round your final answers to nearest whole dollar amount
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You recently won a lottery and have the option of receiving one of the following three prizes: (1) $94,000 cash immediately, (2) $38,000 cash immediately and a six-year annual annuity of $9,700 beginning one year from today, or (3) a six-year annual annuity of $19,600 beginning one year from today. Assuming an interest rate of 7% compounded annually, determine the present value for the above options. Which option should you choose? Note: Round your final answers to nearest whole dollar amount 