Suppose You Have a Winning Lottery Ticket and You Are

question 33

Multiple Choice

Suppose you have a winning lottery ticket and you are given the option of accepting $3000000 three years from now or taking the present value of the $3000000 now. The sponsor of the prize uses a 6% discount rate. If you elect to receive the present value of the prize now the amount you will receive is

• A) $2518860.
• B) $2591520.
• C) $2670000.
• D) $3000000.

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Definitions:

Climacteric Phase

A transitional stage in life, typically occurring in middle age, marked by a decline in reproductive hormones and associated with menopause in women.

Middle Adulthood

A stage of life, usually between the ages of 40 and 65, characterized by personal, professional, and family achievements and adjustments.

Anxiety

An emotion of anxiety or apprehension concerning an unpredictable result.

Hot Flashes

Sudden feelings of warmth, which are often accompanied by sweating and sometimes flushing, typically associated with menopause.