Multiple Choice
You have a choice between a lottery lump sum payout of $10,000,000 today or a series of thirty annual annuity payments (first payment one year from today) .At a discount rate of 7.50%,how large must the annual annuity payments be to make you indifferent between the two choices?
A) $819,814.81
B) $833,102.77
C) $846,712.36
D) $400,000.00
Correct Answer:
Verified
Correct Answer:
Verified
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