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Lucky Ace just won a lottery that will pay $2,500 immediately; in addition to this he would also get three payments of $500 each at

Lucky Ace just won a lottery that will pay $2,500 immediately; in addition to this he would also get three payments of $500 each at the end of year for next three years. If the interest rate earned on his investment is 8.5%, how much is the present value of the prize that he won?

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