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Your friend just won the lottery. He has a choice of receiving $ 1 0 0 , 0 0 0 at the end of each

Your friend just won the lottery. He has a choice of receiving $

100, 000

at the end of each

year for the next

30

years or a lump sum today. The lottery uses an

6 %

annual discount

rate. What lump sum would your friend receive if he chose this option?

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