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Lotta Dough Just Won the State Lottery and Has Elected

Question 15

Multiple Choice

Lotta Dough just won the state lottery and has elected to receive $50,000 per year for 20 years in the form of an annuity due.What is the present value of this stream of payments if money can earn 10 percent annual interest?


A) $864,642
B) $468,246
C) $246,468
D) $500,000

Correct Answer:

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