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Present Value of an Annuity Suppose you are hired by your state government to determine the profitability of a lottery offering
Present Value of an Annuity Suppose you are hired by your state government to determine the profitability of a lottery offering a grand prize of $10 million paid out in equal annual installments over 20 years. Show how to calculate the cost to the state of paying out such a prize. Assume payments are made at the end of each year.Present Value of an Annuity Suppose you are hired by your state government to determine the profitability of a lottery offering a grand prize of $10 million paid out in equal annual installments over 20 years. Show how to calculate the cost to the state of paying out such a prize. Assume payments are made at the end of each year.
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