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You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $620,000 per year. Thus, in

You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $620,000 per year. Thus, in one year, you receive $1.62 million. In two years you get $2.24 million, and so on.

If the appropriate interest rate is 7.2 percent, what is the present value of your winnings?

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