Question 3 (25 points) a. You are the beneficiary of a life insurance policy. The insurance company informs you that you hav two options for receiving the insurance proceeds. You can receive a lump sum of $50,000 today or receive payments of $641 a month for ten years. You can earn 6.5% on your money, compounded monthly. Which option should you take and why? (5 points) b. You are comparing two annuities with equal present values. The applicable discount annuity pays $5,000 on the first day of each year for twenty years. How much does the se pay each year for twenty years if it pays at the end of each year? (10 points) oplicable discount rate is 7.5%. One ich does the second annuity