Multiple Choice
Geraldine was injured in a car accident, and the insurance company has offered her the choice of $25,000 per year for 15 years, with the first payment being made today, or a lump sum.If a fair return is 7.5%, how large must the lump sum be to leave her as well off financially as with the annuity?
A) $225,367
B) $237,229
C) $249,090
D) $261,545
E) $274,622
Correct Answer:
Verified
Correct Answer:
Verified
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