A lottery has two options for winners collecting their

Last updated: 7/29/2022

A lottery has two options for winners collecting their prize: Option A: $20 000 quarterly payments for life Option B: $1 700 000 in one lump sum The current interest rate is 3.48%/a compounded quarterly. Which option would you recommend to Sharon who is the sole winner of the lottery and expects to live another 40 years? Show all your work for full marks!