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What rate of return is built into the annuity

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Question - Suppose you just won the state lottery, and you have a choice between receiving $3,600,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes.

a. 2.76%

b. 3.06%

c. 3.96%

d. 3.36%

e. 3.66%

Reference no: EM132539891

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