Multiple Choice
You have a choice between a lottery lump sum payout of $3,800,000 today or a series of twenty annual annuity due payments.At a discount rate of 6.00%,how large must the annual annuity due payments be to make you indifferent between the two choices? Use a calculator to determine your answer.
A) $331,301.32
B) $351,179.40
C) $190,000.00
D) $312,548.41
Correct Answer:
Verified
Correct Answer:
Verified
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