Question
An insurance policy offers you the option of being paid $750 per month for 20 years or a lump sum of $50,000. Which has the
An insurance policy offers you the option of being paid $750 per month for 20 years or a lump sum of $50,000. Which has the greater value if the current rate of return is 4.5% compounded monthly and you expect to live for at least 20 years?
(Please work out thoroughly, need to understand the work process)
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
