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Jennifer Davis has just won the Lotto. Her prize pays $ 36000 at the end of each year for 6 years. In addition, she will
Jennifer Davis has just won the Lotto. Her prize pays $ 36000 at the end of each year for 6 years. In addition, she will receive a one-time payment of $ 216000 at the end of 6 years. Using the following factors at 9%, what amount has Jennifer really won in the Lotto? (round to the nearest dollar)
Type of Cash Flow Periods Interest Rate Factor
PV of $1 6 9% 0.5963
FV of $1 6 9% 1.6771
PV ordinary annuity 6 9% 4.4859
FV ordinary annuity 6 9% 7.5233
PV annuity due 6 9% 4.8896
a. $ 422629
b. $ 290293
c. $ 523746
d. $ 396000
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