Indifferent between cash now or taking the annuity

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Reference no: EM131317650

You just won the Powerball, as a result you have the choice between taking $250 million today or taking a 20-year annuity. Interest rates are expected to hold at 3.75% over the next 20-years. How much would the annuity need to be annually for you to be indifferent between cash now or taking the annuity?

Reference no: EM131317650

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