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You have just won the lottery and will receive $ 1 , 0 0 0 , 0 0 0 in one year. You will receive

You have just won the lottery and will receive $

1, 000, 000

in one year. You will receive payments for

35

years and the payments will increase by

3.1

percent per year. If the appropriate discount rate is

7.1

percent, what is the present value of your winnings?

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