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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%

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