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Chapter 13 Annuities Due 13.2 present value of an annuity due Present value of an annuity due Present Value Using the Algebraic Method Present value of an annuity due Present value using the financial calculator functions Application of the present-value calculation The market value of an annuity The economic value of an annuity Example A lottery offers the winner a choice between a $300,000 cash prize or quarterly payments of $7000 beginning immediately and continuing for 20 years. Which alternative should the winner pick if money is worth 8% compounde