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You are offered a $1,800,000 retirement package to be given in $90,000 payments at the end of each of the next 20 years. You are
You are offered a $1,800,000 retirement package to be given in $90,000 payments at the end of each of the next 20 years. You are also given the option of accepting a $860,000 lump sum payment now. Interest rates are at 6.8% over the next 20 years. Which is a better option?
the offered annual payments of $90,000
the lump sum of $860,000
they are the same
cannot be determined
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