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Your girlfriend just won the Florida lottery. She has the choice of $12,000,000 today or a 20-year annuity of $1,050,000, with the first payment coming

Your girlfriend just won the Florida lottery. She has the choice of $12,000,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity?

Select the correct answer.

a. 6.04%

b. 5.34%

c. 6.74%

d. 7.44%

e. 4.64%

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