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Which option should be chosen

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Question - The Atlantic Lottery Corporation runs the "Set for Life" lottery. The winner of the Grand Prize can choose either $1 million per year for 25 years or a single cash payment of $17 million. Which option should be chosen if the payments are made at the beginning of each year and, on low-risk investments, money can earn 5% compounded annually?

Reference no: EM132934759

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