The annual discount rate is 9%. Compute the present value of the third option. (Round to nearest whole dollar.)
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
A) $240,000
B) $98,133
C) $101,717
D) $299,192
D) $299,192
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