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Suleiman just won the Texas Lotto jackpot of $9 million! He can either choose to receive the entire $9 million in annual payments over 25

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Suleiman just won the Texas Lotto jackpot of $9 million! He can either choose to receive the entire $9 million in annual payments over 25 years or he can receive a lump sum of $5.9 million now (cash value option). Use your TVM solver to calculate the balance of an annuity made with your annual lotto payments at an interest rate of 4.2% compounded annually for 25 years versus a lump sum investment made with your cash value option at the same interest rate for 25 years. Be sure to write down the 2 final values and discuss an advantage and a disadvantage for each. What would the balances be if we compared the 2 accounts after only 5 years? Annual Payments Cash Value Option 5 25 GE Annual Payments Cash Value Option Advantage Disadvantage

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