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16 August, 01:27

A local magazine is offering a $2,500 grand prize to one lucky winner. the prize will be paid in four annual payments of $625 each, starting one year after the drawing. how much would this prize be worth to you if you can earn 9 percent on your money

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  1. 16 August, 01:55
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    Present worth=625 (1.09^4-1) / [0.09 * (1.09^4) ]

    =2024.82
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