answer:
Detailed explanation:
Option A: $1,565 monthly over 72 months
The total comes to $112,680
Option B: $1,012 each month for 10 years,
which is the same as 120 months
Thus, the total amount received is 1012×120
equaling $121,440.
Option C:
Receive $100,000 in a single payment.
All the details presented are accurate.
However,
As the individual has no preference whether to take the money personally or let it go to an heir, we can disregard the lump sum payment option of $100,000.
Furthermore, as they are willing to wait and are indifferent about who benefits from the insurance payout, the 72-month option can also be overlooked.
Therefore, choosing the second option is advisable since it provides the highest total and the most payments over time.
Waiting for ten years will yield $121,440.
