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You have won a small lottery of $1,000,000. However, instead of a lump sum amount, the lottery will pay you $50,000 per year for 20
You have won a small lottery of $1,000,000. However, instead of a lump sum amount, the lottery will pay you $50,000 per year for 20 years (total of $1,000,000). If interest is 4%, what is the present value of your winnings, assuming payments are received at the end of each year? (Note: Ignore inflation and taxes)
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