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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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