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11. You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 30 years, which will increase 3

11. You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 30 years, which will increase 3 percent per year. If the appropriate discount rate is 7 percent, what is the present value of your winnings? (Hint: think of the annuity types i.e. growing annuity, perpetuity etc.)

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