Your father won a lottery years ago. The value of his winnings at the time was $225,000. He invested this money such that it will provide annual payments of $12,000 a year to his heirs forever. What is the rate of return?
A) 1.88%
B) 2.85%
C) 5.33%
D) 5.49%
E) 6.02%
Correct Answer:
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