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You just received an insurance settlement offer related to an accident you had six years ago. The offer gives you a choice of one of

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You just received an insurance settlement offer related to an accident you had six years ago. The offer gives you a choice of one of the following three offers: Option A: $1,900 a month for 72 months Option B: $1,100 a month for 10 years Option C: $100,000 as a lump sum payment today You can earn 9 percent annually on your investments, You do not care if you personally receive the funds or if they are paid to your heirs should you die within the settlement period. Which one of the following statements is correct given this information? Option B is the best choice because you will receive the most payments. Option B is the best choice because it pays the largest total amount Option A is the best choice because it has the largest current value. Option A is the best choice as it provides the largest monthly payment. You are indifferent to the three choices as they are all equal in value

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