TIME VALUE: Upon graduating from college, She-Hulk received a contract from the WNBA. According to her contract, she had two options. She could either receive $250,000 as a lump sum today, or $70,000 on December 31st of the next 4 years. If she could invest either the lump sum or the annuity amount and receive at least 7%, which would be larger at the end of the 4 years? SHOW ALL WORK FOR FULL CREDIT

Answer rating: 100% (QA)

To determine which option would be larger at the end of 4 years we need to calculate the future valu... View the full answer