# Question & Answer: Jane Bauer has won the lottery and has the following four options for receiving her winnings:…..

Jane Bauer has won the lottery and has the following four options for receiving her winnings:

1.Receive \$100,000 at the beginning of the current year

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2.Receive \$108,000 at the end of the year

3.Receive \$20,000 at the end of each year for eight years

4.Receive \$10,000 at the end of each year for 30 years Jane can invest her winnings at an interest rate of 8% compounded annually at a major bank.

Use the appropriate present or future value table: FV of \$1, PV of \$1, FV of Annuity of \$1 and PV of Annuity of \$1 Calculate the Present value for each of the above options. Round all answers to the nearest dollar.

Present Value

Option 1 \$

Option 2 \$

Option 3 \$

Option 4 \$