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Other Fields Homework Help Accounting Topic started by: AL0354335 on Jan 29, 2023



Title: Patricia is 66 years old and is planning to retire this year. She is covered under her company's ...
Post by: AL0354335 on Jan 29, 2023
Patricia is 66 years old and is planning to retire this year. She is covered under her company's retirement policy which gives her two payment options. The first option is to receive annuity payments of $20,000 each year for the next 20 years. The second option is to receive $250,000 immediately upon retirement. The interest rate is 4%.

Required:

a.What is the present value of Patricia's first option?
b.What is the present value of Patricia's second option?
c.Which option should Patricia choose?


Title: Patricia is 66 years old and is planning to retire this year. She is covered under her company's ...
Post by: boomers1234 on Jan 29, 2023
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