Today is John Smith's birthday, turning 70 years old

Today is John Smith's birthday, turning 70 years old. The average life expectancy of a 70 years old male is about 10 years. Mr. Smith wishes to buy an investment that will pay him an annuity payment, with the first payment starting today. He then wants a payment every year on his birthday up to and including the final payment on his 80th birthday, 11 payments from now. If John receives $350,000.00 for each payment on his birthday, starting today, how much does he have to pay for this annuity investment cost today if the interest rate is 4% per annum? Round your answer to two decimal places. a. $3,066,166.85 b. $2,838,813.52 OC. $3,231,679.41 d. $3,188,813.52 Oe. $2.952,366.06 QUESTION 6 Assume you have won $1 million on Lotto. You have been presented with several payout choices, and you have to make a decision on which one to accept. Provided that the interest rate is 4%, what option gives the highest payoff? The choices are as follows: a. $1 million today (t=0) b. $1.1 million today (t=1) OC. $1.4 million lump sum in 2 years d. A series of constant cash flows of $200,000 a year over 7 years starting today Oe. A series of constant cash flows of $200,000 a year over 7 years starting