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Approximate value gained by taking the best option

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SUPERBALL: You have just won the Superball lottery and are given the following options: i. $1,000,000 in cash today. ii. $8,000 in cash each month starting today and ending after 240 payments. If you believe the effective market rate of interest (EAR) for this opportunity is 7%, with monthly compounding, what is the approximate value gained by taking the best option?

Reference no: EM133120063

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