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You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $660,000 per year. Thus, in
You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $660,000 per year. Thus, in one year you receive $1.66 million. In two years, you get $2.32 million, and so on. If the appropriate interest rate is 7.6 percent, what is the present value of your winnings?
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