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OpenStudy (anonymous):
Rehan has been awarded some money in a settlement. He has the option to take a lump sum payment of $170,000 or get paid an annuity of $1,000 per month for the next 20 years. Which is the better deal for Rehan, and by how much, assuming the growth rate of the economy is 3.05% per year?
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OpenStudy (anonymous):
the second, by $179955.95-$170,000, use http://www.bankrate.com/calculators/investing/annuity-calculator.aspx
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