A company just decided to save $45,000 a month for the next five years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 4.8% interest compounded monthly. It deposits the first $45,000 today. If the company had wanted to deposit an equivalent lump sum today, how much would it have had to deposit? (Note that this is annuity due. Interest rate is quoted in nominal term, that is, per year) $2,196,738.40 $2,560,472.96 $2,347,192.18 $2,405,783.85 $2,259,180.37 QUESTION 18 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 $1,500 a month for fifteen years. You can earn 3.2% interest rate on your money. Which option should you take and why? You should accept the payments because they are worth $207,384.58 today. You should accept the payments because they are worth $214,211.90 today. You should accept the payments because they are worth $210,826.84 today. You should accept the $150,000 because the payments are only worth $196,743.20 today. You should accept the $200,000 because the payments are only worth $188,594.26 today