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    Equivalent lump-sum payment for Shelley's winning lottery

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    Shelley wants to cash in her winning lottery ticket. She can either receive 10, $100,000 semiannual payments starting today, or she can receive a lump-sum payment now based on a 6% annual interest rate. What is the equivalent lump-sum payment?

    a. $853,020
    b. $801,969
    c. $744,090
    d. $878,611

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    Solution explains the computation of equivalent lump-sum payment for Shelley's winning lottery ticket