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Suppose you just won the state lottery, and you have a choice between receiving $2,075,000 today or a 15-year annuity of $300,000, with the first
Suppose you just won the state lottery, and you have a choice between receiving $2,075,000 today or a 15-year annuity of $300,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes.
1. | 13.26% | |
2. | 10.38% | |
3. | 12.14% | |
4. | 11.71% | |
5. | 9.44% |
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