Question: Need help with policy A. Can I get it with the steps and the formula. You have been given a choice between two retirement policies

Need help with policy A. Can I get it with the steps and the formula.

You have been given a choice between two retirement policies as described below. Policy A: You will receive equal annual payments of $10,000 beginning 35 years from now for 10 years. Policy B: You will receive one lump-sum of $100,000 in 40 years from now. Which policy would you choose? Assume rate of interest is 6 percent. Edit View Insert Format Tools Table 12ptv Paragraph v Tv Policy A = Policy B: PV= 100000/(1+.06)^40 = $9722.22

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