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Suppose you just won the state lottery, and you have a choice between receiving $2,500,000 today or a 15-year annuity of $250,000, with the first

Suppose you just won the state lottery, and you have a choice between receiving $2,500,000 today or a 15-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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9.60

9.31%

5.56%

8.78%

7.75%

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