The state lottery's million-dollar payout
The state ;lottery’s million-dollar payout provides for $1.2 million to be paid in 25 installments of $48,000 per payment. The first $48,000 payment is made immediately, and the 24 remaining $48,000 payments occur at the end of each of the next 24 years. If 6 percent is the discount ;rate, what is the present value of this stream of cash ;flows? If 12 percent is the discount ;rate, what is the present value of the cash ;flows?
a. If 6 percent is the discount ;rate, the present value of the annuity due is $___. (Round to the nearest ;cent.)
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