Superlotto offers a choice of $1,000 per week for 25 years or a lump sum payment of $720,000 now. If interest is 5.2% compounded quarterly, determine which option should be chosen, and the economic difference between the two alternatives.
A) Weekly option - benefit of $9,516
B) Weekly option - benefit of $54,481
C) Lump sum option - benefit of $154,481
D) Lump sum option - benefit of $54,481
E) Lump sum option - benefit of $4,481
Correct Answer:
Verified
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