Question
A person is about to retire and must choose between 3 retirement plan options. They are as follows: Receive $75,000 per year for rest of
A person is about to retire and must choose between 3 retirement plan options. They are as follows:
- Receive $75,000 per year for rest of life starting 1 year from today.
- Receive $65,000 per year increasing by 5% per annum for rest of life starting 1 year from today.
- Receive $525,000 lump sum today.
If the person's remaining life expectancy is 10 years and the discount rate is 8% which of these 3 options should the person choose?
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An Introduction To Wavelet Theory In Finance
Authors: Francis In, Sangbae Kim
1st Edition
9814397830, 978-9814397834
