The Lottery Has a Choice of Two Different Prize Payouts

question 42

Multiple Choice

The lottery has a choice of two different prize payouts.One is to receive a lump sum now; the second is to receive an annual payment of $25,000 a year for the next 40 years starting in one year.If interest rates are 5% the amount of the lump sum that would make you indifferent to the two prizes is closest to?

• A)$66,780
• B)$425,426
• C)$428,977
• D)$1,000,000

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Definitions:

Orgasm

The peak of sexual exhilaration, marked by profound pleasure followed by a relaxation phase in the body.

Passionate Love

Definition: An intense emotional state characterized by a strong desire for another person, often accompanied by physiological arousal and a deep emotional connection.

Constant

A situation or variable that remains unchanged or stable across different conditions or over time.

Peak

The highest point or maximum level of performance, achievement, or growth.