Gabrielle just won $3.3 million in the state lottery. She is given the option of receiving a total of $1,300,000 now, or she can elect to be paid $110,000 at the end of each of the next 30 years. If Gabrielle can earn 8 % annually on her investments, from a strict economic point of view which option should she take?
A. If Gabrielle takes the prize as an annuity, the present value of the 30 year ordinary annuity is $?
B. If Gabrielle takes the prize as a single amount, the present value of the lump sum is $?