Multiple Choice
Suppose you just won the state lottery,and you have a choice between receiving $2,575,000 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) 6.41%
B) 7.37%
C) 4.74%
D) 7.44%
E) 7.13%
Correct Answer:
Verified
Correct Answer:
Verified
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