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Your mother is planning to retire this year. Her firm has offered her a lump - sum retirement payment of $ 4 5 , 0
Your mother is planning to retire this year. Her firm has offered her a lumpsum retirement payment of $ or a $ lifetime annuitywhichever she chooses. Your mother is in reasonably good health and expects to live for at least more years. Calculate the present values of each alternative, assuming that an percent interest rate is appropriate to evaluate the annuity. Use Table IV or a financial calculator to answer the question. Round your answer to the nearest dollar.
Lump sum payment: $
Lifetime annuity: $
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