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What is the equivalent interest rate

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Reference no: EM133070993

Question - You have just won the Lottery - Congrats! You go to the ticket winning site and they give you two options: Option 1:  You get $5,300,000 right now. Option 2: You get $220,000 per year for the next 30 years starting with your first payment now. What is the equivalent interest rate between these 2 options?

A. 2.3%

B. 1.6%

C. 3.8%

D. 1.5%

Reference no: EM133070993

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