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What rate of return is the buyer expecting to make

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Problem 1: Denise just won a $48,000,000 lottery in Washington. Instead of receiving a lump sum, she found that she would receive $1,600,000 annually (end of year) for 30 years. Denise is 55 years old and wants her money now. She has been offered $23,937,093 to sell her ticket. What rate of return is the buyer expecting to make if Denise accepts the offer?

Option 1: 2.56%

Option 2: 3.27%

Option 3: 5.24%

Option 4: 7.63%

Reference no: EM132950812

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