How much more is the best option worth today relative to the worst option?

You have just won a lottery and you can choose between the following payout options. The annual inte Show more You have just won a lottery and you can choose between the following payout options. The annual interest rate (EAR) is 9%. a. $100000 right now and $50000 every two years starting 3 years from now and ending 17 years from now (i.e. payments are at t = 0 t = 3 t = 5 t = 15 t = 17). b. $50000 a year for 25 years with the first payment one year from today (i.e. payments are at t = 1 2 3 24 25). c. 20 annual payments of $50000 and a 21st payment of $300000. The first payment is made right now and the $300000 payment is made one year after the last $50000 payment. How much more is the best option worth today relative to the worst option? step by step solution please use tables if necessary do not use excel please explain using formulas thanks in advance Show less

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