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5- You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds.

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5- You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. You can earn 6 percent on your money. Which option should you take and why? (Compare PV on an annuity to the lump sum)

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