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Chapters 5 and 6 are about the time value of money - the fact that a dollar received today is worth more than a
Chapters 5 and 6 are about the time value of money - the fact that a dollar received today is worth more than a dollar received tomorrow as it can be invested today to return a higher amount in the future. If somebody were to receive a huge windfall, such as from a lottery, should they take the annuity or the lump sum? One of the most important considerations in making this decision, although not the only one, is the time value of money. Below are links to articles on this topic: https://smartasset.com/retirement/lump-sum-vs-annuity https://finance.zacks.com/lottery-annuity-vs-lump-sum-2136.html https://money.com/powerball-lottery-annuity-or-lump-sum/ Suppose that you are a financial advisor and need to advise a client who has just won such a lottery. How would you analyze this decision, and what would be your recommendation for the client? Start a New Thread Filter by: All Threads f1 SC Q Search ? f2 f3 f4 f5 2 # 3 20 f6 f7 4+ hp f8 IAA $ 4 % 5 < 6 & 7 8 W E R T Y 19
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