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  3. 1. congratulations! you just won the lottery for $

1. Congratulations! You just won the lottery for $3.75 million. You are given the option...

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Finance

1. Congratulations! You just won the lottery for $3.75 million. You are given the option of receiving $1.8 million now or you can receive $150,000 at the end of every year for 25 years. If you can earn 5% interest on your investments annually, what is the value of the annuity option?

Please show formulas and manual calculations (not using excel)

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