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Suppose you just won the state lottery, and you have a choice between receiving $2,675,000 today or a 20-year annuity of $210,000, with the first

Suppose you just won the state lottery, and you have a choice between receiving $2,675,000 today or a 20-year annuity of $210,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes.

a. 7.85%
b. 13.57%
c. 4.74%
d. 4.36%

e. 5.36%

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