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9. You won the lottery and you are scheduled to receive 30 annual payments of $100,000, starting next year. If your opportuni

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Answer #1

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=100,000[1-(1.12)^-30]/0.12

=100,000*8.05518397

=$805518.40(Approx).

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