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Gabrielle just won $2.5 million in the state lottery which entitles her to receive $100,000 at the end of each year for the next 25
Gabrielle just won $2.5 million in the state lottery which entitles her to receive $100,000 at the end of each year for the next 25 years. As an alternative she can elect to receive a lump-sum payment of $1.3 million now. What is the implicit interest rate charged by the government for the lump-sum payment today? 3.35 % a. 5.82 % 7.69 % C. d. 2.65 % 4.00 % e
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