John Won a Lottery That Will Pay Him $250,000 at the End

Multiple Choice

John won a lottery that will pay him $250,000 at the end of each of the next twenty years. Zebra Finance has offered to purchase the payment stream for $3,397,500. What interest rate (to the nearest percent) was used to determine the amount of the payment?

A) 7%.
B) 6%.
C) 5%.
D) 4%.