Lucky Larry wins $1,000,000 in a state lottery. The standard way in which the state...
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Algebra
Lucky Larry wins $1,000,000 in a state lottery. The standard way in which the state pays such lottery winnings is at a constant rate of $40,000 per year for 25 years. Round your answer to the nearest $10.If Lucky invests each payment from the state at 6% compounded continuously, what is the accumulated future value of the income stream?What is the accumulated present value of the income stream at 6%, compounded continuously? (This amount represents what the state has to invest at the start of its lottery payments, assuming the 6% interest rate holds.)
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