What annual interest rate would you effectively pay

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Reference no: EM132044243

Your rich uncle left $5 million for you when he passed away, but stipulated that you cannot collect the funds until 5 years from today. Your electronic signature business is doing great, but needs more funding now. An investor approaches you and says that he will give you $2.775 million now, in exchange for the rights to the $5 million five years from now. What annual interest rate would you effectively pay if you took the deal?

Reference no: EM132044243

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