Jonas won a lottery that will pay him £125,000 at the end of each of the next twenty years. Zebra Finance has offered to purchase the payment stream for £1,699,000. What interest rate (to the nearest percent) was used to determine the amount of the payment?

Question

Quizplus · Accepted Answer

The Answer of Jonas won a lottery that will pay him £125,000 at the end of each of the next twenty years. Zebra Finance has offered to purchase the payment stream for £1,699,000. What interest rate (to the nearest percent) was used to determine the amount of the payment?

Jonas Won a Lottery That Will Pay Him £125,000 at the End