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You might have noticed the below advertisement where the lottery winner will receive dollars 20,000 every month for the next 20 years suppose you win
You might have noticed the below advertisement where the lottery winner will receive dollars 20,000 every month for the next 20 years suppose you win this lottery and have an option to receive a lump sum amount today calculate the amount you will be happy to accept knowing that a discount rate of 6% is applicable.
b) Calculate the lump sum amount that you will be happy to accept if you were to win the second price which offers $10,000 every month for the next 10 years
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