Estimates the interest


Question: Kimberly has just won a USD 20 million lottery, which will pay her USD 1 million at the end of each year for twenty years. An investor has offered her USD 10 million for this annuity. She estimates that she can earn ten percent interest, compounded yearly, on any amounts she invests. She asks your advice on whether to accept or reject the offer. What will you tell her? [Ignore all Taxes]

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Finance Basics: Estimates the interest
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