Multiple Choice
Suppose you just won the state lottery,and you have a choice between receiving $3,025,000 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) 5.62%
B) 5.35%
C) 3.95%
D) 6.65%
E) 6.34%
Correct Answer:
Verified
Correct Answer:
Verified
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