You win a lottery and the lottery commission will pay you


You win a lottery and the lottery commission will pay you $2 million a year for 10 years. They also offer you a choice to take $14 million as one lump sum payment.

a. What is the long form expression for this problem if the discount factor is unknown?

b. Compute the discount factor the lottery commission used to get the $14 million lump sum payment.

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Business Economics: You win a lottery and the lottery commission will pay you
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