Sam was injured in an accident,and the insurance company has offered him the choice of $45,000 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) $328,799.18
B) $333,069.30
C) $478,253.35
D) $324,529.06
E) $427,011.92
Correct Answer:
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