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Suppose you just won the state lottery, and you have a choice between receiving $ 2 , 2 7 5 , 0 0 0 today

Suppose you just won the state lottery, and you have a choice between receiving $

2, 275, 000

today or a

20 -

year annuity of $

250, 000,

with the first payment coming one year from today. What

rate of return is built into the annuity? Disregard taxes

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