Multiple Choice
You just won the lottery,and you have a choice between receiving $3,500,000 today or a 10-year annuity of $500,000,with the first payment coming 1 year from today.What rate of return is built into the annuity?
A) 6.72%
B) 7.07%
C) 7.43%
D) 7.80%
Correct Answer:
Verified
Correct Answer:
Verified
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