How much does the lottery company have to invest today

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Reference no: EM132048518

You've just won the lottery which promises to pay you $3316 per month for the next 15 years, starting in one month. The lottery company is required to buy US Treasury securities to guarantee that it can meet its obligation to you.

If Treasury securities earn 3% APR, compounded monthly, how much does the lottery company have to invest today in Treasury bonds?

Reference no: EM132048518

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