ou won the lottery and have a number of choices as to how to take the money. Which choice yields a greater present value? Group of answer choices $90,000 (lump sum) 7 years from now using a 6% discount rate $92,000 (lump sum) 7 years from now using an 8% discount rate $12,000 a year at the end of each of the next 6 years using a 6% discount rate $53,500 (lump sum) now using a 6% discount rate

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). however, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). what is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? the interest rate is 9 percent. use appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods. to find the future value of an annuity due when using the appendix tables, add 1 to n and subtract 1 from the tabular value. for example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to appendix c for n = 6 and i = 10 percent. look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716)