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An insurance company promises to pay Jane $ 1 million on her65th birthday in return for one-time payment of $131,400 today.(Jane just turned 35.) At

An insurance company promises to pay Jane $ 1 million on her65th birthday in return for one-time payment of $131,400 today.(Jane just turned 35.) At what rate of interest would Jane beindifferent between accepting the company's offer and investing thepremium on her own?

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