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Gail has won a lottery that pays her $100,000 at the end of this year and increases by 10 percent per year thereafter for 25
Gail has won a lottery that pays her $100,000 at the end of this year and increases by 10 percent per year thereafter for 25 years. Leon has offered Gail $4,500,000 today in exchange for all the money she will receive. If Gail can get 6 percent interest on her savings, is this a good deal? Since the present value of the lottery winnings is $, the offer a good deal. (Round to the nearest dollar as needed.)
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