Two retirement policies described

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You are able to choose between two retirement policies described below. Policy A: Starting 35 years from now, you will receive equal annual payments of $10,000 for 10 years. Policy B: Thirty-five years from now, you will receive one lump-sum payment of $100,000. Which will you choose? Assume the rate of interest is 6 percent.

Reference no: EM132037883

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