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INDUSTRY $-$ Persor

ter $2$ Practice Test

$0$:$07$:$1$

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Question $2(1$ point$)$

Jessie won a lottery and was given the following choice. He could either take $$5,000$

at the end of each month for $25$ years, or a lump sum of $$700,000.$ Assume annual

compounding and determine what interest rate he would have to beat for the lump

sum to be the better choice

A $7\mathrm{.}4\%$

B$)3\mathrm{.}1\%$

C$)7\mathrm{.}0\%$

D$)12\mathrm{.}3\%$

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