Suppose Carlos Has a 60 Percent Chance of Not Collecting

question 35

Multiple Choice

Suppose Carlos has a 60 percent chance of not collecting $100,000 when his rich uncle dies in 10 years.Juanita wants to buy the rights to this possible inheritance from Carlos.How much is the possible inheritance currently worth to Carlos? Assume the interest rate is 9 percent.

• A)$94,695.
• B)$25,345.
• C)$16,896.

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Definitions:

Interface

An interface in programming is a contract or a blueprint that classes can implement; it specifies a set of methods that the implementing class must provide.

Method Headings

The part of a method declaration that includes the method's name, return type, and parameters.

Constant Variables

Variables in programming whose values do not change during the execution of a program, often defined with keywords like 'const' or 'final'.

Interface

A programming structure that specifies a set of methods without implementing them, allowing different classes to be interchangeable if they implement the same interface.