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Present and future value tables of $1 at 3% are presented below: N 1 FV $1 1.03000 PV $1 0.97087 FVA $1 1.0000 PVA
Present and future value tables of $1 at 3% are presented below: N 1 FV $1 1.03000 PV $1 0.97087 FVA $1 1.0000 PVA $1 0.97087 FVAD $1 PVAD $1 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 3 1.09273 0.91514 1.12551 0.88849 5 1.15927 0.86261 5.3091 6 1.19405 0.83748 6.4684 7 1.22987 0.81309 7.6625 3.0909 2.82861 4.1836 3.71710 4.57971 5.41719 6.23028 3.1836 4.3091 3.82861 5.4684 4.71710 6.6625 5.57971 2.91347 7.8923 6.41719 D 8 1.26677 0.78941 8.8923 9 1.30477 0.76642 10.1591 10 1.34392 0.74409 11.4639 7.01969 7.78611 8.53020 11 1.38423 0.72242 12.8078 9.25262 9.1591 7.23028 10.4639 8.01969 11.8078 8.78611 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 13 1.46853 0.68095 15.6178 14 10.63496 1.51259 0.66112 17.0863 11.29607 14.6178 10.25262 16.0863 10.95400 17.5989 11.63496 15 16 1.60471 0.62317 1.55797 0.64186 18.5989 11.93794 20.1569 12.56110 19.1569 12.29607 20.7616 12.93794 Jose wants to cash in his winning lottery ticket. He can either receive nine, $8,000 annual payments starting today, or he can receive one lump-sum Davment today based on a 3% annual interest rate. What would be the lump-sum payment?
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