You are the beneficiary of a life insurance policy. The insurance company offers two options for receiving the proceeds. A lump sum of $50,000 today or payments of $550 a month for the next ten years. If you can earn 6% annually, compounded monthly, which option should you take and why?

Take  : A lump sum of $50,000

Reason : Gives a higher present value than the payments of $550 a month for the next ten years option.

Explanation:

We have to compare apples with apples here. A dollar today is worth more than a dollar tomorrow.

So, i will compare Present value (PV) amounts of the given option. The option giving the highest Present Value is the Best Option.

Option 1 - A lump sum of $50,000

Present Value = $50,000 (given)

Option 2 -  payments of $550 a month for the next ten years

Present Value = $50,000 (to be determined)

Pmt = - $550

P/yr = 12

N = 10 × 12 = 120

i = 6%  

Fv = $0

Pv = ?

Using a Financial Calculator to enter the values as above, the PV is $49,540.40

Conclusion :

The Present Value for option 1 (A lump sum of $50,000), is greater and i would choose this one over option 2 ( payments of $550 a month for the next ten years)

ok this has nothing to do with business

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.