What would be the lump-sum payment
Jose wants to cash in his winning lottery ticket. He can either receive five, $5,000 semiannual payments starting today, or he can receive a lump-sum payment now based on a 6% annual interest rate. What would be the lump-sum payment?
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It might happen, by chance, P^ that would be closer to 1/2 than to 9/16. Find the probability that this misleading event would occur if:
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