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Paul bearer may elect to take a lump-sum payment of 25000

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Paul Bearer may elect to take a lump-sum payment of $25,000 from his insurance policy or an annuity of $3,200 annually as long as he lives. How long must Paul anticipate living for the annuity to be preferable to the lump sum if his opportunity rate is 8%?

Reference no: EM13570152

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