What should mary do take the payment right now

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Question - Mary has won the Iowa lottery and is faced with a tough choice: whether to take an immediate payment of $2,000,000 (after taxes) or $175,000 right now and another 19 annual payments of the same amount (20 payments in total). She thinks that 7% would be an appropriate interest rate to apply to this calculation. What should Mary do: take the payment right now or wait for the 20 payments?

Reference no: EM131938961

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