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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 $2364 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 $2364 now, or accept quarterly payments of $148 for the next four years. If the money is placed into a trust fund earning 4.07% compounded monthly, which is the better option and by how much?
The
a) lump sum
b) quarterly payments
option is better by
$__.
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