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rockinhood · Answer

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

rockinhood · Answer

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

rockinhood · Answer

Annuity is http://prntscr.com/apd6lc

skyvoltage · Answer

lump some lol sound like donald trump