Recall the Application About Opting for a Lump Sum of $500,000

question 79

Multiple Choice

Recall the Application about opting for a lump sum of $500,000 for your retirement or $35,000 per year for the rest of your life to answer the following question(s) .
-If the interest rate is 4 percent, how much interest would the retiree earn the first year if she opted for the lump sum payment, and chose to invest the entire payment at this interest rate?

• A) $1,400
• B) $20,000
• C) $55,000
• D) $235,000

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