(Solved by Humans)-Your rich uncle dies, leaving you a life insurance policy worth $100,000. The insurance company also...
Question
1. Your rich uncle dies, leaving you a life insurance policy worth $100,000. The insurance company also offers you an option to receive $8,225 per year for 20 years, with the first payment due today. Which option should you use? 2. A home products manufacturer estimates that the probability of being sued for product defects is 1% per year per product manufactured. If the firm currently manufactures 20 products, what is the probability that the firm will experience no lawsuits in a given year?
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