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William wants to cash in his winning lottery ticket. The lottery commission has determined equal value of two alternatives offered William. He can either receive

William wants to cash in his winning lottery ticket. The lottery commission has determined equal value of two alternatives offered William. He can either receive ten $

100, 000

semiannual payments starting today, or he can receive a lump

-

sum payment now based on a

6 %

annual interest rate. What would be the lump

-

sum payment? Show your work.

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