Which option should be choose

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Reference no: EM131338948

Your mother is planning to retire this year. Her firm has offered her a lump-sum retirement payment of $50,000 or a $6,000 lifetime annuity-whichever she chooses.

Your mother is in reasonably good health and expects to live for at least 15 more years. Which option should she choose, assuming that an 8 percent interest rate is appropriate to evaluate the annuity?

Reference no: EM131338948

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