Please help me decide between three options

[josies96]

Lisa’s Uncle Jack is about to retile and has asked Lisa to help him decide what to do with his Finances. Uncle Jack has been investing in superannuation for a long time and has $450 000 in his superannuation account. He has to decide between three options:

 Take the whole $450 000


Or

 Convert the money into a pension that will pay him $2000 per month for the rest of his life.


Or

 Take half the $450 000 in cash and convert the remainder into a pension that will pay him $1350 per month for the rest of his life.


Make the appropriate calculations to help you decide which of the three options is the best for Uncle Jack.

 

[HallsofIvy]

I'm afraid I don't understand this. If he "takes" the whole $450000 what does he do with it? Does he put it into an interest bearing account or just spend it? The best I can see to do is divide $450000 by $2000 to determine that by taking the $450000, he could receive $2000 a month for 225 months (18 years 9 months).