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. You are given a choice between taking a lump-sum payment of $25,292.8 now from your insurance policy or an annuity of $3,200 annually as

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. You are given a choice between taking a lump-sum payment of $25,292.8 now from your insurance policy or an annuity of $3,200 annually as long as you live. How long must you anticipate living for the annuity to be indifferent to the lump sum if interest rate is 8%%? ou need to anticipate living 8 more years to reach a sum of over $25,292.8. At 8 years, you will have received $27,648

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