The Mega Millions grand prize was recently $1,600,000,000.The prize has two different options:

-Receive a cash payment of $904,000,000, or

-Receive equal payments each year for 30 years, with the first payment paid immediately.Those annual payments are $53,333,333.

Given these facts, what implicit discount rate is the Mega Millions management assuming ?

Note: ignore income taxes for this problem