Which will pay her r1 million at the end of each year

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Reference no: EM131175133

Jia has just won a R20 million lottery, which will pay her R1 million at the end of each year for 20 years.

An investor has offered her R10 million for this annuity.

She estimates that she can earn 10 percent interest, compounded annually, on any amounts she invests. She asks your advice on whether to accept or reject the offer. What will you tell her? (Ignore Taxes)

Reference no: EM131175133

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