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Marcus has won a $ 3 , 0 0 0 , 0 0 0 state lottery. He can take his prize as either 1 5

Marcus has won a

3, 000, 000

state lottery. He can take his prize as either

15

yearly payments of

200, 000

or a lump sum of

1, 360, 000 .

Which is the better

option? Assume an interest rate of

12 % .

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