Lorraine Jackson won a lottery. She will have a choice of receiving an annuity of...
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Finance
Lorraine Jackson won a lottery. She will have a choice of receiving an annuity of $25,000 at the end of each year for the next 30 years, or a lump sum of $240,400 today. If she can earn a return of 9 percent on any investment she makes, what should she do? (Round to the nearest hundred dollars.)
Group of answer choices
Take the lump sum because its value is more than the annuitys value.
Take the lump sum because its value is less than the annuitys value.
Take the annuity because its value is more than $240,400.
Take the annuity because its value is less than $240,400.
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