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Mathematics 8 Online

OpenStudy (rockinhood):

Fan, Medal and Testimony.

10 years ago

OpenStudy (rockinhood):

Ralph has been awarded some money in a settlement. He has the option to take a lump sum payment of $425,000 or get paid an annuity of $2,000 per month for the next 25 years. Which is the better deal for Ralph, and by how much, assuming the growth rate of the economy is 5.15% per year? Lump Sum: by $91,772.64 Lump Sum: by $34,251.30 Annuity: by $91,772.64 Annuity: by $34,251.30

10 years ago

rebeccaxhawaii (rebeccaxhawaii):

got the formula?

10 years ago

OpenStudy (rockinhood):

I do not. I think it's FV though.

10 years ago

OpenStudy (rockinhood):

For Lump sum it's FV PV = ________ (1 + i)^nt

10 years ago

OpenStudy (rockinhood):

Annuity it's http://prntscr.com/apd6lc

10 years ago

OpenStudy (halox156):

It's B

10 years ago

OpenStudy (rockinhood):

What's your reasoning?

10 years ago

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