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You have just signed a contract that entitles you to receive $1,000,000 twenty years from now, but you can't wait and want your money now.
You have just signed a contract that entitles you to receive $1,000,000 twenty years from now, but you can't wait and want your money now. Assuming that the risk-free, inflation-adjusted APR (annual percentage rate) is 3% per year, compounded continuously, what is a fair price for your contract?
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