uppose you just won the state eceiving $2,550,000 today or $: ayment starting one year from econd choice provide? 6.75% 7.49% O 7.89% O 6.28%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Suppose you just won the state lottery, and you have a choice between
receiving $2,550,000 today or $270,000 a year for 18 years, with the first
payment starting one year from today. What annual interest rate does the
second choice provide?
6.75%
7.49%
7.89%
6.28%
Transcribed Image Text:Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or $270,000 a year for 18 years, with the first payment starting one year from today. What annual interest rate does the second choice provide? 6.75% 7.49% 7.89% 6.28%
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