Dr. Jane Kodiak plans to sell her practice to an HMO. The HMO will pay her $1.5

Question:

Dr. Jane Kodiak plans to sell her practice to an HMO. The HMO will pay her $1.5 million now or will make a $500,000 partial payment now and make additional payments of $140,000 at the end of each year for the next 10 years. If money is worth 6.5%, compounded annually, is it better to take $1.5 million now or $500,000 now and $140,000 at the end of each year for the next 10 years? Justify your choice.
(a) Decide whether the problem relates to an ordinary or an due, and then
(b) Solve the problem.
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,...