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Billy Madison hit the jackpotHe has the option of receiving $3,660,000 today or a 25-year ordinary annuity of $250,000, with the first payment coming one

Billy Madison hit the jackpotHe has the option of receiving $3,660,000 today or a 25-year ordinary annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Ignore any possible tax impact.

4.62%

4.13%

3.97%

4.79%

5.16%

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