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OpenStudy (rockinhood):
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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
OpenStudy (rockinhood):
For Lump sum it's FV PV = ________ (1 + i)^nt
OpenStudy (skyvoltage):
lump some lol sound like donald trump
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