Question

You are the beneficiary of a life insurance policy. the insurance company offers two options for receiving the proceeds: a lump sum of $50,000 today or payments of $550 a month for ten years. if you can earn 6 percent, compounded monthly, which option should you take and why?

Answer 1

Take the $550 per month for monthly income as after ten years it would reach the same amount just in a longer period of time