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You have just won the lottery! While the value of the lottery was announced as $130 million, upon reading the fine print you find that
You have just won the lottery! While the value of the lottery was announced as $130 million, upon reading the fine print you find that you will actually receive 25 equal annual payments with the first payment received today. You would prefer equal monthly payments over the next 60 years with the first payment received today. If the APR is 9.5 percent compounded daily, what equal monthly payment would make you equally as well off as the payments proposed by the lottery? $ S Lottery value Number of payments Annual payment APR Compounding periods for interest rate Years for monthly payments 130,000,000 25 5,200,000 9.5% 365 60
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