What is the present value of each option

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Reference no: EM13724898

Banks everywhere are offering a rate of 5%. You have just won the $1,000,000 lottery and they are offering you four options to receive your winnings:

Present Value

$1,000,000 in cash right now ___________

Annual checks of $75,000 for 20 years ___________

$7,000 checks monthly for 20 years ___________

$1500 checks weekly for 20 years ___________

What is the present value of each option?

Which option will give you the greatest present value? I choose ______

Reference no: EM13724898

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