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16-02-2024
Business

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You have just won a lottery and you can choose between the following payout options. The annual interest rate (EAR) is 9%.
a. $100,000 right now and $50,000 every two years starting 3 years from now and ending 17 years from now (i.e. payments are at t = 0, t = 3, t = 5, ... , t = 15, t = 17).

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