Question
You just received an insurance settlement offer related to an accident you had four years ago. the offer gives you a choice of one of
You just received an insurance settlement offer related to an accident you had four years ago. the offer gives you a choice of one of the following three offers: Option A: 6,500$ on the first day of each year for 40 years. Option B: 610$ on the first day of each month for 25 years. Option C: 75,000$ as a lump sum payment today. You can earn 8.75% 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 of the following statements is correct given this information?
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