Can someone explain how interest rates influence the choice when evaluating lump sums and annuities? I thought I knew the answer but got it wrong. I know what the right answer is now but am totally confused. I know as interest rates go up; a lump sum would be a better value. What does it mean by "the more valuable it is to get money rapidly"? Is it saying the lump sum would be the rapid choice? Maybe it is the word choice in this question, but if anyone has a better way to phrase it, I would greatly appreciate it Reply