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Mathematics
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Marlon has just won some money on a game show! He has the option to take a lump sum payment of $625,000 now or get paid an annuity of $4,500 per month for the next 15 years. Assuming the growth rate of the economy is 3.9% compounding annually over the next 15 years, which is the better deal for Marlon and by how much?
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