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Mr. Sundaram is planning to retire this year. His company can pay him a lump sum retirement payments of Rs 2, 00,000 or Rs 25,000

Mr. Sundaram is planning to retire this year. His company can pay him a lump sum retirement payments of Rs 2, 00,000 or Rs 25,000 life time annuity whichever he chooses. Mr. Sundaram is in good health and estimates to live for at least 20 more years. If his interest rate is 12%, which alternative should he choose? Ans Present Value of Annuity

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