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Highlight the new models for the next year

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Import Cars is planning a big party to highlight the new models for the next year. They are considering offering a $5,000 grand prize to one lucky winner. $1,000 will be paid on the day of the drawing. The remaining $4,000 will be paid in four annual payments of $1,000 starting 1 year after the drawing. How much is this prize really worth at a 6 percent rate of return?

Reference no: EM131624122

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