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Ralph has been awarded some money in a settlement. He has the option to take a lump sum payment of $425,000 or get paid an annuity of $2,000 per month for the next 25 years. Which is the better deal for
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Ralph has been awarded some money in a settlement. He has the option to take a lump sum payment of $425,000 or get paid an annuity of $2,000 per month for the next 25 years. Which is the better deal for Ralph, and by how much, assuming the growth rate of the economy is 5.15% per year?

User Jerry Vines
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1 Answer

7 votes

Answer: I believe it’s lump sum $91,772.64

Explanation:

I’ll correct myself if wrong

User Cato
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7.8k points
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