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. Suppose you were the sole winner of the Power Ball Lottery and the corresponding $30 million jackpot. You may either receive a lump sum
. Suppose you were the sole winner of the Power Ball Lottery and the corresponding $30 million jackpot. You may either receive a lump sum payment now, or a series of thirty $1 Million payments per year, beginning immediately for 30 periods. If the current 30-year interest rate is 2%, compounded annually, what should the lump sum payment be today to make you indifferent between receiving a lump sum payout or receiving the $1 Million per year set of payments for the next thirty-years? Assume annual compounding
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