Question: Your uncle offered you a choice between a lump sum payment of $ 5 , 0 0 0 today or an annuity of $ 1

Your uncle offered you a choice between a lump sum payment of $5,000 today or an annuity of $1,370 a year for five years. Which one do you prefer given an interest rate of 10 percent?
A. the lump sum
B. the annuity
C. both options are equally good
D. cannot make a choice
Your uncle offered you a choice between a lump sum payment

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