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Time Value of Money

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Your girlfriend just won the Florida lottery. She has the choice of $15,000,000 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. 2.79%
B. 3.10%
C. 3.44%
D. 3.79%
E. 4.17%

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