Question: The New York Lottery provides prizes that start at 3
The New York Lottery provides prizes that start at $3 million and rise each time someone fails to win the lottery. Participants in the lottery are permitted to choose to receive a lump-sum payment or 26 annual payments as an annuity. A recent winner of $20 million was surprised to receive a check for less than $10 million. How could you explain this to the winner? Exercises
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