5. (A prize) A major lottery advertises that it pays the winner $10 million However, this prize...

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5. (A prize) A major lottery advertises that it pays the winner $10 million However, this prize money is paid at the rate of $500,000 each year (with the first payment being imme- diate) for a total of 20 payments What is the present value of this prize at 10% interest?

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Investment Science

ISBN: 9780195391060

1st International Edition

Authors: David G. Luenberger

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