Question: Jane has been offered a choice between a lump sum payment of $100,000 today or an annuity that pays $8,000 per year for 20 years,

Jane has been offered a choice between a lump sum payment of $100,000 today or an annuity that

pays $8,000 per year for 20 years, starting one year from today. If the interest rate is 6% per year,

which option should she choose?

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