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The Winner of a $315 million dollar Powerball lottery could have between the following options: a) a lump sum (or the PV of the payments)
The Winner of a $315 million dollar Powerball lottery could have between the following options: a) a lump sum (or the PV of the payments) i.e. in this case $183 Milliion: (183,000,000.00) or b) payments of $10,500,000 annually over thirty years. If you assume the payments are in the form of an "annuity due" what is the Winner's "break-even" rate?
A) 4.2813%
B) 3.9354%
C)5.0000%
D) You cannot determine based on the information provided
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