Suppose Becky has her choice of $20,000 at the end of each month for life or a single prize of $1.5 million. She is 35 years old and her life expectancy is 40 more years. Find the present value of the annuity if money is worth an annual rate of 7.6%, compounded monthly. Round your answer to the nearest cent.
A)$1,252,219.09
B)$2,144,302.78
C)$2,618,784.82
D)$3,005,382.16
E)$2,871,152.62

Question

Suppose Becky has her choice of $20,000 at the end of each month for life or a single prize of $1.5 million. She is 35 years old and her life expectancy is 40 more years. Find the present value of the annuity if money is worth an annual rate of 7.6%, compounded monthly. Round your answer to the nearest cent. ​
A)$1,252,219.09
B)$2,144,302.78
C)$2,618,784.82
D)$3,005,382.16
E)$2,871,152.62

Quizplus · Accepted Answer

The Answer of Suppose Becky has her choice of $20,000 at the end of each month for life or a single prize of $1.5 million. She is 35 years old and her life expectancy is 40 more years. Find the present value of the annuity if money is worth an annual rate of 7.6%, compounded monthly. Round your answer to the nearest cent. ​
A)$1,252,219.09
B)$2,144,302.78
C)$2,618,784.82
D)$3,005,382.16
E)$2,871,152.62

Suppose Becky Has Her Choice of $20,000 at the End