The lump sum payment of a lottery is $124,100,000. Rather than receiving a lump sum payout, the
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The lump sum payment of a lottery is $124,100,000. Rather than receiving a lump sum payout, the winnings are paid in 30 annual payments. The first payment of 6.5 million is made immediately. Payments increase by 4% per year, thereafter. Calculate the annual effective rate of return the lump sum must earn to generate these 30 annual payments.
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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