Suppose you just won the state lottery, and you have a choice between receiving $2,700,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. Assuming both choices have the same present value, what rate of return is built into the annuity? Disregard taxes.

Answer rating: 100% (QA)

To determine the rate of return built into the annuity we can calculate th... View the full answer