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Adams Long has just learned he has won a $508,300 prize in the lottery. The lottery has given him two options for receiving the
Adams Long has just learned he has won a $508,300 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Adams takes all the money today, the state and federal governments will deduct taxes at a rate of 46% immediately (2) Alternatively, the lottery offers Adams a payout of 20 equal payments of $39,600 with the first payment occurring when Adams turns in the winning ticket. Adams will be taxed on each of these payments at a rate of 25%
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