An annuity contract will pay you $4,000 a year (end of year) for the n

An annuity contract will pay you $4,000 a year (end of year) for the next three years. Or, you can choose to receive $12,610 at the end of the third. Assuming that you can earn 8% on investments, you should

A)

choose to receive the $4,000 annuity payments.
B)

choose to receive the $12,610 payment.
C)

flip a coin to make the choice; each is equally attractive.
D)

flip a coin to make the choice; each is equally unattractive.

ANSWER

A