Question
Annuity vs. Lump Sum Choice At what interest rate (as an EAR) would you be indifferent between the following two choices: 1) receiving $10,000 per
Annuity vs. Lump Sum Choice
At what interest rate (as an EAR) would you be indifferent between the following two choices: 1) receiving $10,000 per year, starting 1 year from today, for a total of 2 payments (the last payment occurs 2 years from today in that case)... OR, 2) receiving $21522 exactly 3 years from today? Answer: _____% Rounding and Formatting instructions: Do not enter a % sign in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (Example: if your answer is 12.34567%, you should enter 12.35.)
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