Uno As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of $13,747now, or accept monthly payments of $150 for the next nine years. If the money is placed into a trust fund earning 3.49% compoundedannually, which is the better option and by how much?Theoption is better by $(Rourest cent as needed. Round all intermediate values to six decimal places as needed.)lump summonthly payments

Given 1st choice = 13747 lumpsum payment today 2nd choice = 150 $ monthly for 9 years Interest rate…

Business

Economics

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Uno

As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of $13,747
now, or accept monthly payments of $150 for the next nine years. If the money is placed into a trust fund earning 3.49% compounded
annually, which is the better option and by how much?
The
option is better by $
(Rou
rest cent as needed. Round all intermediate values to six decimal places as needed.)
lump sum
monthly payments

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