You have a choice between a lottery lump sum payout of $10,000,000 today or a series of thirty annual annuity payments (first payment one year from today).At a discount rate of 7.50%,how large must the annual annuity payments be to make you indifferent between the two choices?
A)$819,814.81
B)$833,102.77
C)$846,712.36
D)$400,000.00

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The Answer of You have a choice between a lottery lump sum payout of $10,000,000 today or a series of thirty annual annuity payments (first payment one year from today).At a discount rate of 7.50%,how large must the annual annuity payments be to make you indifferent between the two choices?
A)$819,814.81
B)$833,102.77
C)$846,712.36
D)$400,000.00

You Have a Choice Between a Lottery Lump Sum Payout