Multiple Choice
Joe Brady just won a $450,000 lottery in Pennsylvania. Instead of receiving a lump sum, he found that he would receive $22,500 annually (end of year) for 20 years. Joe is 75 years old and wants his money now. He has been offered $140,827 to sell his ticket. What rate of return is the buyer expecting to make if Joe accepts the offer?
A) less than 1%
B) 15%
C) 18%
D) 12%
Correct Answer:
Verified
Correct Answer:
Verified
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