The Powerball lottery jackpot reached $1.6 billion two year ago. Assume the jackpot was to be paid in 25 annual installments of $64,000,000.00 per year (starting in year 1). An alternative to the installment plan was to receive a lump sum payment today. If the applicable discount rate is 3.78% per year, how large would the lump sum payment option be?
a. $ 1,023,473,787.05
b. $ 1,143,548,754.15
c. $ 1,269,953,279.10
d. $ 1,311,806,526.90
e. $ 1,381,187,139.64