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Consider a lottery that pays to the winner an annual annuity of $ 16 that begins in one year and continues for 8 consecutive years

Consider a lottery that pays to the winner an annual annuity of $16 that begins in one year and continues for 8 consecutive years with one exception -- the payment at the end of year 3 (and only in this year) is not $16 but instead is $24. Using an interest rate of 4%, determine the present value of this prize.

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