Question: Pension Plan Options Suppose an employee of a company is retiring and has the choice of two benefit options under the company pension plan. Option \(A\) consists of a guaranteed payment of $650 at the end of each month for 15 years. Alternatively, under option B, the employee receives a lump-sum payment equal to the present value of the payments described under option \(A\).

1. Find the sum of the payments under option \(A\).
2. Find the lump-sum payment under option \(\mathrm{B}\) if it is determined by using an interest rate of 5.5% compounded monthly. Round your answer to the nearest dollar.

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