Your girlfriend just won the Florida lottery. She has the choice of $10,700,000 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. a. 6.08% b. 7.51% c. 8.71% d. 7.43% e. 5.93%
Your girlfriend just won the Florida lottery. She has the choice of $10,700,000 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. a. 6.08% b. 7.51% c. 8.71% d. 7.43% e. 5.93%
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
Section: Chapter Questions
Problem 1PS
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Your girlfriend just won the Florida lottery. She has the choice of $10,700,000 today or a 20-year
annuity of $1,050,000, with the first payment coming one year from today. Whatrate of return is built into the annuity? Disregard taxes.a. 6.08%b. 7.51%c. 8.71%d. 7.43%e. 5.93%
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