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You just won a lottery and you opted to receive never-ending payments as your prize. The first payment will be $58,000 and will be paid
You just won a lottery and you opted to receive never-ending payments as your prize. The first payment will be $58,000 and will be paid one year from today. Every year thereafter until the end of time, the payments will increase by 2.8 percent annually. What is the present value of your prize at a discount rate of 12.9 percent?
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