You have just won the lottery! You can either receive $6,300 a year for 20 years or $100,000 as a lump sum payment today. What is the interest rate per year on the annuity so that its present value is equal to $100,000?

a.

1.95 percent

b.

2.10 percent

c.

2.31 percent

d.

2.64 percent

e.

1.68 percent