Your girlfriend just won the Florida lottery. She has the option of $11,500,000 today or a 20-year

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Your girlfriend just won the Florida lottery. She has the option of $11,500,000 today or a 20-year annuity of $1,050,000, with the first payment a year from now. What rate of return is built into the annuity? Ignore taxes.

The answer is: 6.58%

but my question is how do you solve this on a BA II plus financial calculator? or no calculator?

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

Posted Date: Jun 02, 2023 08:23 AM

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Your girlfriend just won the Florida lottery. She has the option of $11,500,000 today or a 20-year

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To solve this problem using a financial calculator like the BA II Plus you can use the Time Value of ... View the full answer

Fundamentals Of Corporate Finance

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