Elizabeth Gentry won an $21,000,000 lottery and elected to receive her winnings in 30 equal annual installments. After receiving the first 10 installments, Elizabeth and her husband divorced, and the remaining 20 payments became part of the property settlement. The judge who presided over the divorce proceedings awarded one-half interest in the future lottery payments to Elizabeth and the other half to her ex-husband. Following the divorce, Elizabeth decided to sell her interest in the 20 remaining lottery payments to raise the cash needed to open a flower store. An investor has offered Elizabeth $3,707,900. Click here to view the factor table. What discount rate did the investor use in calculating the purchase price? (Round answer to O decimal places, e.g. 25%.) Discount rate % Periods 4% 5% 6% 7% 8% 12% 12345 67899 0.9615 0.9524 0.9434 0.9346 0.9246 0.9070 0.8900 0.8734 0.8890 0.8638 0.8396 0.8163 0.8548 0.8227 0.7921 0.7629 0.8219 0.7835 0.7473 0.7130 9% 10% 11% 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8621 0.8475 0.8333 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7432 0.7182 0.6944 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6407 0.6086 0.5787 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5523 0.5158 0.4823 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4761 0.4371 0.4019 13% 14% 16% 18% 20% 0.7903 0.7462 0.7050 0.6663 0.7599 0.7107 0.6651 0.6227 0.7307 0.6768 0.6274 0.5820 0.7026 10 0.6756 0.6446 0.5919 0.6139 0.5584 0.6302 0.5835 0.5403 0.5439 0.5002 0.5083 0.4632 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4104 0.3704 0.3349 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3538 0.3139 0.2791 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3050 0.2660 0.2326 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2630 0.2255 0.1938 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2267 0.1911 0.1615 #233 11 0.6496 12 13 14 15 0.5553 0.4810 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.1954 0.1619 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1685 0.1372 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1452 0.1163 0.0935 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1252 0.0985 0.0779 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1079 0.0835 0.0649 0.1346 0.1122 16 17 18 19 0.3957 0.3305 0.2765 20 0.3769 0.3118 0.2584 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.4746 0.2317 0.1945 0.1635 0.1377 0.1161 0.4564 0.2145 0.1784 0.1486 0.1240 0.1037 0.1415 0.1229 0.0930 0.0708 0.0541 0.1252 0.1078 0.0802 0.0600 0.0451 0.1108 0.0946 0.0691 0.0508 0.0376 0.0981 0.0829 0.0596 0.0431 0.0313 0.0868 0.0728 0.0514 0.0365 0.0261 $1 PV= (1 + i)" APPENDIX 9.2 Present value of an annuity of $1 per period. Periods 4% 1 2 0.9615 1.8861 3 4 5 5% 6% 7% 8% 9% 10% 11% 12% 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 1.8594 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4868 2.4437 2.4018 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1698 3.1024 3.0373 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7907 3.6959 3.6048 13% 14% 16% 18% 20% 0.8850 0.8772 0.8621 0.8475 0.8333 1.6681 1.6467 1.6052 1.5656 1.5278 2.3612 2.3216 2.2459 2.1743 2.1065 2.9745 2.9137 2.7982 2.6901 2.5887 3.5172 3.4331 3.2743 3.1272 2.9906 68899 7 10 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.6847 3.4976 3.3255 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.0386 3.8115 3.6046 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.3436 4.0776 3.8372 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.6065 4.3030 4.0310 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.8892 5.6502 5.4262 5.2161 4.8332 4.4941 4.1925 11 8.7605 8.3064 7.8869 12 9.3851 8.8633 8.3838 13 9.9856 9.3936 8.8527 14 10.5631 9.8986 9.2950 15 7.4987 7.1390 6.8052 6.4951 6.2065 5.9377 5.6869 5.4527 5.0286 4.6560 4.3271 7.9427 7.5361 7.1607 6.8137 6.4924 6.1944 5.9176 5.6603 5.1971 4.7932 4.4392 8.3577 7.9038 7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 5.3423 4.9095 4.5327 8.7455 8.2442 7.7862 7.3667 6.9819 6.6282 6.3025 6.0021 5.4675 5.0081 4.6106 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 5.5755 5.0916 4.6755 16 17 18 19 20 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 7.3792 6.9740 6.6039 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.5488 7.1196 6.7291 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.7016 7.2497 6.8399 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.8393 7.3658 6.9380 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.9633 7.4694 7.0248 6.2651 5.6685 5.1624 4.7296 6.3729 5.7487 5.2223 4.7746 6.4674 5.8178 5.2732 4.8122 6.5504 5.8775 5.3162 4.8435 6.6231 5.9288 5.3527 4.8696 1 $1- (1+i)" PVAL= i