Best pay out option for a matured insurance investment

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A 60 years old individual is asking for guidance concerning the best pay out option for a matured insurance investment. One option provides a payment for 15 years the other provides a payment for 25 years. If the value of the investment is $ 750,000 and the future interest rate is 4.5%, what would be the yearly difference between the 15 and 25 year payment plans. What is the total amount of money he would receive under each plan? How much would he receive if he just only took interest payments for the twenty five years? What important principle is demonstrated by comparing these methods?

Reference no: EM131567957

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