Statistics

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The state lottery claims that its grand prize is $1 million. The lucky winner will receive $50,000 upon presentation of the winning ticket plus $50,000 at the end of each year for the next 19 years. Why isn't this really a million-dollar prize? What would it actually be worth in dollars to you? What would the twenty yearly payments need to be for the present value of the lottery to be $1 million?

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