7. Suppose you have a choice between receiving
$2,550,000 today or a 20-year annuity of $250,000, with the first
payment coming one year from today. What rate of return is built
into the annuity?
Solution :-
Now the Rate of Return that is built into the annuity ( Makes Annuity Present Value $2,550,000 ) = 7.49%
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