Suppose you just won the state lottery, and you have a choice between receiving $3,500,000 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.

Select the correct answer.

a. 3.57%

b. 3.87%

c. 3.77%

d. 3.67%

e. 3.47%