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BB John has just learned he has won a $ 2 , 5 0 0 , 0 0 0 prize in the state lottery. He

BB John has just learned he has won a $2,500,000 prize in the state lottery. He has two options for receiving the payments: (1) If BB takes all the money today, the state and federal governments will deduct taxes at a combined rate of 40% immediately. (2) Alternatively, the lottery offers BB a payout of 20 equal payments of $200,000 with the first payment occurring when BB turns in the winning ticket. BB will be taxed on each of these payments at a rate of 30%. Assuming BB can earn a 6% rate of return (compounded annually) on any money invested during this period, how much will he will earn if he goes with option 2? Do not use dollar signs, commas, or decimals in your answers. Round to the nearest dollar.
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