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What is the present value at a rate

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It is January 1, 2018 and you have just won the lottery which pays you $1,000 per month for 50 years. It begins paying out on January 31st, 2025, which is after a seven year wait. Assuming an interest rate of 6% (annual percentage rate), what is the present value of this series of cash-flows today? What is the present value at a rate of 4%? Explain the difference.

Reference no: EM132125221

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