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2. Jenny wins a lottery. Starting one month from now, she will receive $1000 a month for life. I a) What is the present value

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2. Jenny wins a lottery. Starting one month from now, she will receive $1000 a month for life. I a) What is the present value of the lottery payments if Jenny lives another 40 years? Assume that money can be invested at 8% per year, compounded monthly. b) Would the present value in part a) double if the monthly payments were $2000 instead of $1000? Explain. (C-5 marks)

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