Question

Fan, Medal and testimony for help.

Answer 1

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

Answer 2

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

Answer 3

Annuity is
http://prntscr.com/apd6lc

Answer 4

lump some lol sound like donald trump