Your neighbor, Ted Greene, is seeking your advice on an insurance settlement offer (he just received)...

 

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Your neighbor, Ted Greene, is seeking your advice on an insurance settlement offer (he just received) related to an accident he had four years ago. The offer gives him a choice of one of the following three offers: Option A: $6,500 on the first day of each year for 40 years Option B: $610 on the first day of each month for 25 years Option C: $75,000 as a lump sum payment today Ted can earn 8.75% p.a. or 0.7015% per month on investments and doesn't care if he personally receive the funds or if they are paid to his heirs should he die within the settlement period. Which one of the following statements is correct given this information? Your neighbor, Ted Greene, is seeking your advice on an insurance settlement offer (he just received) related to an accident he had four years ago. The offer gives him a choice of one of the following three offers: Option A: $6,500 on the first day of each year for 40 years Option B: $610 on the first day of each month for 25 years Option C: $75,000 as a lump sum payment today Ted can earn 8.75% p.a. or 0.7015% per month on investments and doesn't care if he personally receive the funds or if they are paid to his heirs should he die within the settlement period. Which one of the following statements is correct given this information?

Answer rating: 100% (QA)

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