Multiple Choice
Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today.What rate of return is built into the annuity? Disregard taxes.
A) 7.12%
B) 7.49%
C) 7.87%
D) 8.26%
E) 8.67%
Correct Answer:
Verified
Correct Answer:
Verified
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