After Winning the Lottery, You Are Indifferent Between Receiving $750,000

question 386

Multiple Choice

After winning the lottery, you are indifferent between receiving $750,000 end-of-the-year payments for 15 years or a lump-sum payment of $7,106,223 today. At what interest rate would you be indifferent between the two options?

• A) 5.48%
• B) 6.38%
• C) 7.28%
• D) 8.18%
• E) 9.27%

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