You have been given the choice between two retirement policies listed below.Poli

Question

You have been given the choice between two retirement policies listed below.Policy A: You will receive annual payments of $20,000 beginning 35 years from now for 10 yearsPolicy B: You will receive one lump sum of $250,000 in 40 yearsWhich policy should you choose assuming an annual interest rate of 7%? Answer Policy A Policy B Either, the policies are of the same value There is insufficient information to make a choice You have been given the choice between two retirement policies listed below.Policy A: You will receive annual payments of $20,000 beginning 35 years from now for 10 yearsPolicy B: You will receive one lump sum of $250,000 in 40 yearsWhich policy should you choose assuming an annual interest rate of 7%? Policy A Policy B Either, the policies are of the same value There is insufficient information to make a choice Policy A Policy B Either, the policies are of the same value There is insufficient information to make a choice

Explanation / Answer

Either, the policies are of the same value

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