A Lottery Winner Will Receive $1 Million at the End

question 17

Multiple Choice

A lottery winner will receive $1 million at the end of each of the next ten years. What is the future value (FV) of her winnings at the time of her final payment, given that the interest rate is 8.5% per year?

• A) $14.84 million
• B) $13.84 million
• C) $18.95 million
• D) $19.95 million

---

Definitions:

Locational Cost-Volume Analysis

A method used in business to evaluate how geographical locations affect cost and production levels to optimize operations and logistics.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and depreciation.

Goods-Producing Locations

Sites where physical products are manufactured or assembled from raw materials or components.

Service Facility Location

The process of choosing the most appropriate location for a service establishment to optimize accessibility to customers and operational efficiency.