Solved: What rate of return is built into the annuity, Finance Basics

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What rate of return is built into the annuity

Problem: Your girlfriend just won the Florida lottery. She has the choice of $15,000,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity?

A.    2.79%
B.    3.10%
C.    3.44%
D.    3.79%
E.    4.17%

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