Annuity vs. Lump SumAt what interest rate (as an EAR) would you be indifferent between the following
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Question:
Annuity vs. Lump SumAt 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 of2payments (the last payment occurs2years from today in that case)...OR, 2) receiving $21,153 exactly2years from today? Answer: _____%Margin of error for correct responses: +/- .03%.
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