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What is the future value of the payments

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Problem 1: Tom Brown will receive $10,000 a year for the next 15 years from his trust. If a 6 percent interest rate is applied, what is the future value of these payments?

Problem 2: You have just won $1 million in a lottery. The amount is to be paid out at the rate of $50,000 a year for the next 20 years. With a discount rate of 5 percent, what is the present value of your winnings?

Reference no: EM132882759

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