Suppose you were offered the following options: a 10-year annuity of $10,000 at the end of each

Question:

Suppose you were offered the following options: a 10-year of $10,000 at the end of each year or a $60,000 lump-sum payment today. If you want to make 10%, which option would you prefer? To answer this question, calculate the present value of both options and the of both options. Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...