What discount rate is the state using

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Reference no: EM131000135

You win the $20 million state lottery, and you have a choice of taking an amount of money per year for the next 20 years or a flat payment now. The flat payment that the state offers you is $9.82 million.

A. What discount rate is the state using?

B. Should you take the money or the annuity, and why?

Reference no: EM131000135

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