Determination of rate of return
Question: You just won the state lottery. The state gives you die choice of 1,000,000 dollars today or a twenty year annuity of 60,000 dollars, with the 1st payment coming one year from today. Determine what rate of return is built into the annuity?
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You just won the state lottery. The state gives you die choice of 1,000,000 dollars today. Determine what rate of return is built into the annuity?
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