You have been given the choice between two retirement policies:
Policy A: You will receive annual payments of $26,000 beginning thirty five years from now for twenty years.
Policy B: You will receive one lump sum of $200,000 in forty years. Which policy should you choose assuming an annual interest rate of 12percent?
Policy A
Policy B
 
In amortized loans, when comparing the first few payments to the last few payments, under most circumstances which portion of the loan will be comparatively larger at the beginning of the loan vs. the end of the loan?
A.
The interest portion of the loan.
B.
Neither
C.
The principal portion of the loan.
D.
Both