The Multi-State Lottery Association (MSLA) that administers Powerball determined the amount of the annual annuity payment as

Question:

The Multi-State Lottery Association (MSLA) that administers Powerball determined the amount of the annual payment as follows. First the MSLA determined that, from lottery ticket sales, it could pay $227.8 million as a single lump prize. The MSLA then obtained quotes in the financial markets on 30-year annual-payment annuities due that could be purchased with the $227.8 million. The best quote was $11.3333 million per year. Rounded to the nearest 0.01%, what was the rate of return on this Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...