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

Question

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] · Answer 1 · 2022-05-31T14:03:11+03:00

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