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You Have Just Won the Lottery! You Can Either Receive

Question 57

Multiple Choice

You have just won the lottery! You can either receive $183,555 per year for 20 years or $2,300,000 as a lump sum payment today.What is the interest rate on the annuity option?


A) 4.94 percent
B) 3.98 percent
C) 5.50 percent
D) 4.75percent
E) 4.25 percent

Correct Answer:

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