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Assume that your rich relative passes away, leaving you a life insurance policy worth $212,000. The insurance company also offers you an option to receive

Assume that your rich relative passes away, leaving you a life insurance policy worth $212,000. The insurance company also offers you an option to receive $8,500/year for 25 years, with the first payment due today. Which option should you use?

a) There is not enough information given to answer the question.

b) Neither, you incur a loss with each option.

c) Either, they are worth the same.

d) The annuity.

e) The lump sum

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