Multiple Choice
Sam was injured in an accident,and the insurance company has offered him the choice of $24,000 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 him as well off financially as with the annuity?
A) $248,236.26
B) $189,023.94
C) $234,571.88
D) $202,688.32
E) $227,739.69
Correct Answer:
Verified
Correct Answer:
Verified
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