Gloria Ammon Has Just Won the State Lottery and Has

question 2

Multiple Choice

Gloria Ammon has just won the state lottery and has the following three payout options for after-tax prize money:
1) $64,000 per year at the end of each of the next six years
2) $304,000 (lump sum) now
3) $502,000 (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:

• A)$240,000
• B)$98,133
• C)$101,717
• D)$299,192

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Definitions:

Previous Attempts

Prior efforts or tries at accomplishing a task or goal before the current attempt.

Motivation

The driving force behind an individual's actions, desires, and needs, pushing them towards achieving certain goals.

Processes

A series of actions or steps taken to achieve a particular end.

Disclose

The action of making information known or public, especially after being secret or private.