A. Your rather is about to retire. His firm has given him the option of retiring with
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Question:
A. Your rather is about to retire. His firm has given him the option of retiring with a lump sum of $50,000 or an annuity of $8,000 for 10 years. Which is worth more now, f the discount rate is (1) 6%, (2) 8%? B. You are offered a $25,000 life insurance policy requiring thirty annual payments of $195 each. What is the compound value of the payments that you will have made after the policy is paid up assuming that the discount rate is 10%? Please show step by step details and formulas.
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