What rate of return is built into the annuity

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Reference no: EM132059669

Question

You just won the state lottery, and you have a choice between receiving $3,500,000 today or a 10-year annuity of $500,00, with the first payment coming one year from today.

What rate of return is built into the annuity? PLEASE SHOW WORK.

Reference no: EM132059669

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