How do i solve this?
rudy has been awarded some money in a settlement. he has the option to take a lump sum payment of $200,000 or get paid an annuity of $1,000 per month for the next 25 years. which is the better deal for rudy, and by how much, assuming the growth rate of the economy is 2.75% per year?
1)
lump sum: by $14,899.82
2)
annuity: by $14,899.82
3)
annuity: by $43,535.88
4)
lump sum: by $43,535.88

2)  Annuity: by $14,899.82

Step-by-step explanation:

Given is -

Rudy has been awarded some money in a settlement.

He has the option to take a lump sum payment of $200,000

or get paid an annuity of $1,000 per month for the next 25 years.

Lets assume, that the growth rate of the economy is 2.75% per year

We will find how much the value becomes in annuity after 25 years.

p =

r = 0.0275

n = 25 years

Present value formula is =

Putting the values in formula, we get

=>

= $214900.36

Now the difference between annuity and lump sum =

We can take this as, close to given option 2.

Therefore, option 2 is correct.

The better deal for Rudy is to get paid an annuity, as it will give him $14899.82 more in 25 years than the lump sum amount.

answer:  

step-by-step explanation:

here x represents the height of the pole,

and, the height of the shadow of the pole is 12 feet.

also, the angle of elevation from the top of the pole is 40°,

therefore,

by the low of sine,

which is the required equation for finding the value of x,