How much assuming the growth of the economy

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Question 1: Rudy has been awarded some money in a settlement. He had the option to take a lump sum payment of 200000 or get paid an annuity of 1000 per month for the next 25 years. Which is the deal for Rudy , and by how much , assuming the growth of the economy is 2.75% per year ?

Lump sum : by $14,899.82

Lump sum: by $ 43,535.88

Annuity : by $ 14,899.82

Annuity: by $43,535.88

Reference no: EM132498854

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