What interest rate is the lottery commission using

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Reference no: EM131950593

In a recent large PowerBall lottery, the prize was reported to be worth $590 million, which could be taken in 25 equal annual installments of $23.6 million beginning today or as a single payment today of $334 million.

a) What interest rate is the lottery commission using? b) How would you decide whether to take the 25 year annuity or the lump sum?

Reference no: EM131950593

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