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As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of $4809 now, or
As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of
$4809
now, or accept
quarterly
payments of
$165
for the next
eight
years. If the money is placed into a trust fund earning
3.63%
compounded
semi-annually,
which is the better option and by how much?
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