In the Million Dollar Lottery, a winner is paid a million dollars at the rate of $50,000

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In the “Million Dollar Lottery,” a winner is paid a million dollars at the rate of $50,000 per year for 20 years. Assume that these payments form an ordinary annuity and that the lottery managers can invest money at 6% compounded annually. Find the lump sum that the management must put away to pay off the “million dollar” winner.

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