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PROBLEM 4 Assume that you just won $35 million in the Florida lottery, and hence the state will pay you 20 annual payments of $1.75

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PROBLEM 4 Assume that you just won $35 million in the Florida lottery, and hence the state will pay you 20 annual payments of $1.75 million each beginning immediately. If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 20-year U.S. Treasury bonds) is 6 percent, what is the present value of your winnings? PROBLEM 5 Epitome Healthcare has just borrowed $1,000,000 on a five-year, annual payment term loan at a 15 percent rate. The first payment is due one year from now. Construct the amortization schedule for this loan Page 1 of 1 315 words Focus MacBook esc LOBI 12 W W tab

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