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Margaret Moore has won a state lottery and will receive a payment of $94,000 every year, starting today, for the next 20 year

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Answer #1

Present value of annuity due=(1+rate)*Annuity[1-(1+interest rate)^-time period]/rate

=1.0578*94,000[1-(1.0578)^-20]/0.0578

=94,000*12.3526

=$1161144(Approx).

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