• anonymous
Rehan 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
Mathematics

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