A lottery winner must decide between receiving $5,000 at the end of every month for 10 years or one lump sum of $1,000,000 after 10 years. What annually compounded nominal rate of interest would make the two options equal in value?
A) 10.152%
B) 7.984%
C) 9.774%
D) 7.807%
E) 9.580%
Correct Answer:
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