Question
Andy just won the Washington lottery. He has the choice of $25,788,500 today or a 30-year annuity of $3,200,000, with the first payment coming one
Andy just won the Washington lottery. He has the choice of $25,788,500 today or a 30-year annuity of $3,200,000, with the first payment coming one year from today. What rate of return is built into the annuity?
Choose one answer from below and please explain:
* less than 8%
* 9.84%
*13.11%
*11.99%
Can you please show work using excel function (=RATE) ?
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Managerial Accounting
Authors: John J Wild, Ken W. Shaw, Barbara Chiappetta
7th edition
1260482936, 978-1260482935
