单选题 Justin Banks just won the lottery and is trying to decide between the annual cash flow payment option and the lump sum option. Justin can earn 8% at the bank and the annual cash flow option is $ lO0000/year, beginning today for 15 years. What is the annual cash flow option worth to Justin today?

A、

A. $ 855947.87.
B、

B. $1500000.00.
C、

C. $ 924423.70.

【正确答案】 C

【答案解析】First put your calculator in the BGN. N=15 ; I/Y=8 ; PMT=100000; CPT PV=924423.70. Alternatively, do not set your calculator to BGN, simply multiply the ordinary annuity (end of the period payments) answer by I + I/Y. You get the annuity due answer and you don't run the risk of forgetting to reset your calculator back to the end of the period setting.