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What is the present value of the winnings

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Question - The $21.0 million lottery payment that you have just won actually pays $1.4 million per year for 15 years. The interest rate is 9%.

a. If the first payment comes in 1 year, what is the present value of the winnings?

b. What is the present value if the first payment comes immediately?

Reference no: EM133057023

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