What rate of return is built into the annuity


Your girlfriend just won the Florida lottery. She has the choice of $16,600,000 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?

A) 2.75%

B) 2.73%

C) 2.52%

D) 2.35%

E) 2.54%

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Accounting Basics: What rate of return is built into the annuity
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