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You Have Just Won a Lottery That Promises to Pay

Question 36

Multiple Choice

You have just won a lottery that promises to pay you and your heirs $1000 dollars a month forever. How much could you get for this stream of cash if the rate of return is 6% compounded monthly?


A) $200,000
B) $166,667
C) $943,520
D) None of the above

Correct Answer:

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