Question
Today is your 25th birthday and you must choose between two retirement options. The first option will provide you with 12 equal annual payments of
Today is your 25th birthday and you must choose between two retirement options. The first option will provide you with 12 equal annual payments of $130,000 beginning on your 65th birthday. The second option will provide you with one payment of $1,200,000 on your 70th birthday. If the interest rate is 6.5 percent per year and you are assured of living to at least 80 years of age, which option is better?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
