Which should she choose for greatest return after 20 years

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Reference no: EM131306552

Future Value of Annuity. Jesse has just learned that she won $1 million in her state lottery. She has the choice of receiving a lump-sum payment of $312,950 or $50,000 per year for the next 20 years.

Jesse can invest the lump sum at 8%, or she can invest the annual payments at 6%. Which should she choose for the greatest return after 20 years?

Reference no: EM131306552

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