Business, 29.06.2021 01:00, painespeach1849

Lottery. Your dreams of becoming rich have just come true. You have won the State of Tranquility's Lottery. The State offers you two payment plans for the $6 comma 000 comma 000 advertised jackpot. You can take annual payments of $150 comma 000 at the end of the year for the next 40 years or $1 comma 466 comma 858 today. a. If your investment rate over the next 40 years is 11%, which payoff will you choose? b. If your investment rate over the next 40 years is 9%, which payoff will you choose? c. At what investment rate will the annuity stream of $150 comma 000 be the same as the lump-sum payment of $1 comma 466 comma 858?

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Lottery. Your dreams of becoming rich have just come true. You have won the State of Tranquility's...