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Posted on Jul 28, 2024

You have won a game show prize of a trip across Europe one year from now valued at $ 2 5 , 0 0 0

You have won a game show prize of a trip across Europe one year from now valued at $

25, 000 .

If instead, you are able to take the present value of the trip in cash, how much cash would you want if the rate you can earn is

8 %

annually, compounded quarterly?

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