$8$

$5$ points

You just won the state lottery. The state gives you the choice of $$550,000$ today or an $18-$year annuity of $$56,665\mathrm{.}93,$ with the first payment coming one year from today. What rate of return is built into the annuity?

$8\mathrm{.}25\%$

$8\mathrm{.}00\%$

$7\mathrm{.}75\%$

$8\mathrm{.}50\%$

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