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Your girlfriend just won the Florida lottery. She has the choice of $13,300,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. 4.86% 4.09% 5.10% 4.81% 5.39%

Your girlfriend just won the Florida lottery. She has the choice of $13,300,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. 4.86% 4.09% 5.10% 4.81% 5.39%

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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Your girlfriend just won the Florida lottery. She has the choice of $13,300,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. 4.86% 4.09% 5.10% 4.81% 5.39%
Transcribed Image Text:Your girlfriend just won the Florida lottery. She has the choice of $13,300,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. 4.86% 4.09% 5.10% 4.81% 5.39%
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