3a. You win a lottery, and there are no other winners. The announced prize is $30 million which is paid in 30 equal installments of $1 million. The first payment is made right now. Each subsequent payment is made at the end of each of the next 29 consecutive years. If you choose, you can take a lump-sum payment now. Suppose that the lottery commission uses a 6% discount rate. What is the value of the lump-sum payment?
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