Randy WRecently Won the Western States Lottery of $6,500,000

Multiple Choice

Randy W.recently won the Western States Lottery of $6,500,000.The lottery pays either a total of twenty $325,000 payments per year with the first payment today (i.e. ,an annuity due) ,or $3,500,000 today.At what interest rate would Randy be financially indifferent between these two payout choices?

A) 5.37%
B) 7.36%
C) 7.76%
D) 8.00%