She has choice of 16600000 today or a 20-year annuity of


Question - Your girlfriend just won the Florida lottery. She has the choice of $16,600,000 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) 2.75%

B) 2.73%

C) 2.52%

D) 2.35%

E) 2.54%

Solution Preview :

Prepared by a verified Expert
Accounting Basics: She has choice of 16600000 today or a 20-year annuity of
Reference No:- TGS02572516

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)