Julie won a lottery. She will have a choice of receiving an annuity of $23,000 at the
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Question:
Julie won a lottery. She will have a choice of receiving an annuity of $23,000 at the end of each year for the next 30 years, or a lump sum of $200,400 today. If she can earn a return of 11 percent on her alternative investments, what should she do? (Round to the nearest hundred dollars.)
A.Take the lump sum because its value is more than the annuitys value.
B. Take the annuity because its value is more than $200,400.
C. Take the lump sum because its value is less than the annuitys value.
D. Take the annuity because its value is less than $200,400.
Related Book For
Business Math
ISBN: 978-0133011203
10th edition
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble
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