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7. (A prize) A major lottery advertises that it pays money is paid at the rate of $50,000 each year with the y advertises that

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7. (A prize) A major lottery advertises that it pays money is paid at the rate of $50,000 each year with the y advertises that it pays the winner $1 million. However, this prize the rate of S50,000 each year with the first payment being immediate) a total of 20 payments. What is the present value of this prize at 5%

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