You Have Just Won $50,000 on Your Scratch and Win

question 66

Multiple Choice

You have just won $50,000 on your Scratch and Win ticket,but you won't be awarded the money until your 40th birthday,20 years from now.If the appropriate discount rate is 15%,what is the present value of your winnings?

• A) $3,055.01
• B) $3,513,27
• C) $2,656.53
• D) $3,048.78
• E) $3,067.49

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Definitions:

Diabetes Insipidus

A condition characterized by excessive thirst and excretion of large amounts of severely diluted urine, lacking the typical sugar presence of diabetes mellitus.

Hyposecretion

The diminished secretion of hormones or other products from glands, leading to deficiencies in the body.

Abbreviation

A compact version of a word or phrase.

Potassium

A mineral and an electrolyte essential for cell function, heart, muscle, and nerve function, and the maintenance of normal blood pressure.