In: Finance
You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a sum payment of 50,000$ today pr receive payments of 641$ a month for 10 years. You can earn 6.5% on your money. Which option should you take if you are most concerned about the value today? How much will you save by taking it? Show work.