Alex meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $98,000 cash immediately, (2) $40,000 cash immediately and a six-period annuity of $9,900 beginning one year from today, or (3) a six-period annuity of $19,800 beginning one year from today. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) 1. assuming an interest rate of 6%, determine the present value for the above options. which option should alex choose? 2. the weimer corporation wants to accumulate a sum of money to repay certain debts due on december 31, 2030. weimer will make annual deposits of $200,000 into a special bank account at the end of each of 10 years beginning december 31, 2021. assuming that the bank account pays 6% interest compounded annually, what will be the fund balance after the last payment is made on december 31, 2030?
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Alex meir recently won a lottery and has the option of receiving one of the following three prizes:...
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