A lottery offers two options for the prize. (7)

Question

Option A: $1000 a week for life.

Option B: $600 000 in one lump sum.

If you choose Option B, you have the opportunity to place the winnings into an investment that also makes regular payments, at a rate of 3%/a, compounded monthly.

Which option would the winner choose if s/he expects to live for another 50 years?
At what point in time is Option A better than Option B?
Write a brief reflection about which option you would choose, and why (pay attention to the math, but reflect upon how much money you would want to be spending as opposed to saving).