Question: =+P525 Value of an annuity versus a single amount Assume that you just won the state lottery. Your prize can be taken either in the

=+P5–25 Value of an annuity versus a single amount Assume that you just won the state lottery. Your prize can be taken either in the form of $40,000 at the end of each of the next 25 years (i.e., $1,000,000 over 25 years) or as a single amount of $500,000 paid immediately.

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