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PLEASE SHOW WORK AND FORMULAS! Suppose you have just won the first prize in a lottery. The lottery offers you two possibilities for receiving your
PLEASE SHOW WORK AND FORMULAS!
Suppose you have just won the first prize in a lottery. The lottery offers you two possibilities for receiving your prize. The interest rate during the entire period is 12% OPTION 1- Receive a payment of $10,000 at the end of the year, and then, for the next 15 years this payment will be repeated, but it will grow at a rate of 5%. OPTION 2 Receive $100,000 right now. Which of the two possibilities would you takeStep by Step Solution
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