Question: Hi there, If you can please help me solve this problem. If you can also show your work that would be great. Much appriated! Thank

Hi there,

If you can please help me solve this problem. If you can also show your work that would be great. Much appriated!

Thank you! :)

A gatcha game has two options for winners collecting their prize:

Option A: $900 each month for life

Option B: $500,000 in one lump sum

The current interest rate is 6.5% compounded monthly.

a) Which option would you suggest to a winner who expects to live for another 25 years?

b) When is option A equal to option B?

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