As the beneficiary of a life insurance policy, you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. If you can earn 6 percent on your money, which option should you take and why?

the option of $200,000 because the value of 1400 for 20 years every monthy is only 195,413.

Explanation:

To determine which is better, we compare the value of $200,000 with the future value of $1400  per month for 20 years at 6 per interest.

The formula  for calculating the future value of annuities is as follows

PV = P × ( 1 − (1+r)−n)/ r

P V= present

P= $1,400

r =6 % or 0.06 % or 0.005 per month

n = 20 years or 240 periods

PV = $1400 x ( 1-(1+0.005]-240)/ 0.005

P=  $1400 x (1-0.3020961415)/0.005

P =$1400 x (0.697903859/0.005)

P= $1400 x 139.5807718

P=$195,413.078

The future value of $1400 at 6 percent for 20 years is $195,413, which is less than $200,000.

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.

riley- $3

sean- $4

jake- $8

riley has the absolute advantage.