Paul Bearer may elect to take a lump-sum payment of $25,000 from his insurance policy or an annuity of $3,200 annually as long as he lives. How long must Paul anticipate living for the annuity to be preferable to the lump sum if his opportunity rate is 8%?
a) approximately 8 years
b) approximately 10 years
c) approximately 13 years
d) approximately 15 years