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Consider a lottery that pays to the winner an annual annuity of $ 86 that begins in one year and continues for 7 consecutive years
Consider a lottery that pays to the winner an annual annuity of $86 that begins in one year and continues for 7 consecutive years with one exception -- the payment at the end of year 4 (and only in this year) is not $86 but instead is $129. Using an interest rate of 8%, determine the present value of this prize.
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