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Sonbull [250]
3 years ago
5

Max has just won some money on a game show! He has the option to take a lump sum payment of $500,000 now or get paid an annuity

of
$4,900 per month for the next 10 years. Assuming the growth rate of the economy is 2.9% compounding annually over the next 10 years, which
is the better deal for Max and by how much? (4 points)
са
05
Lump Sum: by $77,462.75
Lump Sum: by $4,145.41
Annuity: by $88,000.00
Annuity: by $4,145.41
Mathematics
1 answer:
Fofino [41]3 years ago
3 0

Answer:

The second option annually

Step-by-step explanation:

(4,900×12)×10 the multiply by 2.9%. Take that number and add on every 10 years

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