One of your friends just won the CA lottery. She has the choice of $$12,500,000$ today or a $25-$year annuity of $$950,000,$ with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. $($Hint: Use an EXCEL function, $=$ RATE$($nper$,$ pmt$,$ pv$,[$fv$])$

$3\mathrm{.}71\%$

$4\mathrm{.}48\%$

$5\mathrm{.}70\%$

$6\mathrm{.}12\%$

$7\mathrm{.}08\%$