Present and Future Value Tables of $1 at 3% Are

question 4

Multiple Choice

Present and future value tables of $1 at 3% are presented below:

-Jose wants to cash in his winning lottery ticket. He can either receive five $5,000 annual payments starting today, or he can receive one lump-sum payment today based on a 3% annual interest rate. What would be the lump-sum payment?

• A) $23,586.
• B) $22,899.
• C) $21,565.
• D) $23,000.

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