lRehan has been awarded some money in a settlement. He has the option to take a lump sum payment of $170,000 or get paid an annuity of $1,000 per month for the next 20 years. Which is the better deal for Rehan, and by how much, assuming the growth rate of the economy is 3.05% per year?
Lump Sum: by $63,712.66
Lump Sum: by $7,707.19
Annuity: by $63,712.66
Annuity: by $7,707.19

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