Lottery: Annuity or lump sum? which is better option?
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Assume you won the lottery for $7M. You have the following two choices in how you want to receive your prize:
1. $350,000 each year for the next 20 years, with the first check received today
2. One lump sum of $4M in cash today.
Which is the better option?
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Your tutorial is attached and explains how the rate changes the decision.
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