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On a recent trip to the united states, you purchased a ticket in a state lottery. Now you discover that you are the lucky winner
On a recent trip to the united states, you purchased a ticket in a state lottery. Now you discover that you are the lucky winner of the $30 million prize. You can take your prize money either as (a) 30 payments of 1 million per year (starting today), or (b) $15 million paid today. If the interest rate is 8% which option should you take?
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