Your friend just won the lottery. She has been given a choice of $1,000,000 today or a 10-year annuity with payments of $75,000 every six months. The first payment is coming six months from today. What annual rate of return is built into the annuity?

a)12.49

b)8.43 percent

c)12.24 percent

d)9.07

e)9.83