Sam was injured in an accident,and the insurance company has offered him the choice of $46,000 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) $536,896.32
B) $475,786.17
C) $541,261.33
D) $453,961.11
E) $436,501.07
Correct Answer:
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