Suppose You Win a Small Lottery and You Are Given

question 65

Multiple Choice

Suppose you win a small lottery and you are given the following choice: You can receive (1) an immediate payment of $5,000 or (2) two annual payments, each in the amount of $2,700, with the first payment coming one year from now, and the second payment coming two years from now. You would choose to take the two annual payments if the interest rate is

• A)2 percent, but not if the interest rate is 3 percent.
• B)3 percent, but not if the interest rate is 4 percent.
• C)4 percent, but not if the interest rate is 5 percent.
• D)5 percent, but not if the interest rate is 6 percent.

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Definitions:

Hepatitis C

A liver infection caused by the hepatitis C virus, which can lead to liver inflammation, and in severe cases, liver failure or cancer.

Alcohol Abuse

The excessive or inappropriate consumption of alcohol, leading to physical or mental health problems.

Acetaminophen

A medication used to reduce fever and relieve pain. It's known for its availability over-the-counter and its use in various forms of analgesics and antipyretics.

Diaphoresis

Excessive sweating, commonly a response to stress, physical exertion, or a symptom of medical conditions.