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Consider a lottery that pays to the winner an annuity of $ 600 that begins immediately (an annuity due) and then annually in year 1

Consider a lottery that pays to the winner an annuity of $600 that begins immediately (an annuity due) and then annually in year 1 through year 13 with one exception. Because of high administrative costs associated with running the lottery, the payment in year 8, and only 8, is not $600 but $0. Using an interest rate of 5%, determine the present value of this cash flow stream.

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