Question $4$

Lorraine Jackson won a lottery. She will have a choice of receiving an annuity of $$40,000$ at

the end of each year for the next $30$ years, or a lump sum of $$350,000$ today. If she can earn a

return of $9$ percent on any investment she makes, what should she do$?$

Take the lump sum because its value is more than the annuity's value.

Take the annuity because its value is less than $$350,000.$

Take the annuity because its value is more than $$350,000.$

Take the lump sum because its value is less than the annuity's value.