Timothy is retiring from his job soon at which time his employer will

make the following offer:

A lumpsum amount of $$200,000$

A sum of $$15,000$ at the beginning of each year for the next $25$

years.

If the average interest rate is likely to be $5\mathrm{.}5\%$ p$.$a$.$ for the next

$25$ years, which option should Timothy choose?