Question: At retirement, a client has two payment options: a 20-year annuity at 50,000 per year starting after one year or a lump sum of 500,000

At retirement, a client has two payment options: a 20-year at €50,000 per year starting after one year or a lump sum of €500,000 today. If the client's required rate of return on retirement fund investments is 6 percent per year, which plan has the higher present value and by how much?

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