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Gabrielle just won $2.7 million in the state lottery. She is given the option of receiving a total of $1,300,000 now, or she can elect
Gabrielle just won $2.7 million in the state lottery. She is given the option of receiving a total of $1,300,000 now, or she can elect to be paid $90,000 at the end of each of the next 30 years. If Gabrielle can earn 6% annually on her investments, from a strict economic point of view which option should she take?
If Gabrielle takes the prize as an annuity, the present value of the 30-year ordinary annuity is $ . (Round to the nearest dollar.)
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