Ben just won the lottery and has a choice between accepting a lump sum payment of $5,000,000 or annual payments of $375,000 at the end of each yearfor the next 30 years, which he could than invest in a financial instrument that will pay him 6%. Ben decides to take the annual payments.
How much is the choice worth today?
a. $4,989,237.91
b. $5003,714.82
c. $6,271,390.46
d. $5,161,811.68