As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of

$3849

now, or accept

quarterly

payments of

$183

for the next

six

years. If the money is placed into a trust fund earning

5.57%

compounded

semi-annually,

which is the better option and by how much?

The

quarterly payments

lump sum

option is better by

$nothing.