Tessa won the lottery for $2,500,000 but due to a change in state laws she will not be able to collect it for three years. Ralph is willing to give her a lump sum today in return for the payment in three years. If current interest rates are 14% per year, how much will Tessa receive today?
A. $1,687,430
B. $5,804,080
C. $2,500,000
D. $3,703,860
Answer: A
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Find the exact value of the expression.cosĀ
A.
B.
C.
D.
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