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Your friend just won the lottery. He has a choice of receiving $50,000 a year for the next 20 years or a lump sum today.

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Your friend just won the lottery. He has a choice of receiving $50,000 a year for the next 20 years or a lump sum today. The lottery uses a 12% discount rate. What would be the lump sum amount your friend would receive? $1,000,000 (B) $37,3,472 (C) $500,000 (D) $312,967

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