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    Lottery winner - which do you choose?

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    You just won the lottery! You have a choice now of $5,000,000 now (cash value), or $425,000 a year for 30 years. You are a pretty aggressive investor and feel confident that you can get a 9% yearly return on your investments in the stock market. From a purely financial standpoint, which do you choose?

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    Solution Preview

    Calculate the present value of the annuity of $425,000 for 30 ...

    Solution Summary

    The solution discusses the lottery and different ways in which to receive the jackpot.