QUESTION 16 Your cousin just won the lottery. He will receive $15,000 per year for twenty-five...

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Answer 1

Answer #1

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

=15000[1-(1.092)^-25]/0.092

=15000*9.66551053

=$144982.66(Approx).

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Answer 2

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