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Your rich uncle named you as the beneficiary of his life insurance policy. The insurance company gives you a choice of $100000 today or a
Your rich uncle named you as the beneficiary of his life insurance policy. The insurance company gives you a choice of $100000 today or a 12-year annuity of $12000 at the end of each year. If the going interest rate is 8%, which option would you choose and why?
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