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Posted on Aug 06, 2024

Suppose you just won the state lottery, and you have a choice between receiving $ 2 , 6 2 5 , 0 0 0 today

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

2, 625, 000

today or a

20 -

year annuity of $

270, 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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