Write the equation using annual discount rate

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Question: A person wins a $10 million lottery and chooses to take 20 equal payments (each are paid on the anniversary date of claiming the prize) rather than the lump sum of $5 million. The person changes their mind after one month and sells the structured settlement for $3.892 million (they already were paid the first $500 thousand). Write the equation using 10% annual discount rate.

Reference no: EM132032223

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