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Which is more money? $1000 a day for x yrs or $365,000/yr for x yrs. wouldn/t it be the same?
12 Answers
- ?Lv 74 years agoFavorite Answer
Publisher's Clearing House, huh? Technically, $1k a day is more money. Why? Leap Years. Every 4th year gets you another $1k. OK, back to your question. Go for the $365k because it's easier record keeping.
- The_Doc_ManLv 74 years ago
Tax-wise (I'm talking IRS), there is no difference. If taxes were NOT an issue, and if you had another source of income until the yearly payment came out, take the yearly option.
Doing it yearly lets you invest a large amount in a way to give you an annuity based on a really healthy amount of principal. You could live on the interest in the second year. If you can live on the annuity until the next year, the return amount DOUBLES. The living expenses for that first year would be the only issue. After that, you could EASILY live on a number that increases arithmetically from one year to the next. Then you would learn the REAL power of compound interest.
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- ?Lv 64 years ago
1000 a day for x yrs you get your money faster and it will gain in interest to more than 365000 for next year....... compound interest or whatever bank pays
- YamiLv 54 years ago
Depends on the value of x if you're including the extra $1000 every four years for leap years.