John Won a Lottery That Will Pay Him $100,000 at the End

question 87

Multiple Choice

John won a lottery that will pay him $100,000 at the end of each of the next twenty years.Assuming an appropriate interest rate is 8% compounded annually, what is the present value of this amount?

• A)$1,060,360.
• B)$21,455.
• C)$981,815.
• D)$4,576,196.

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Definitions:

Alkyl Halide

Organic compounds containing a halogen atom replacing a hydrogen atom in an alkyl group.

Starting Material

The fundamental substance or compound that undergoes chemical reactions to produce a final product.

Stereochemical Detail

Information regarding the three-dimensional arrangement of atoms within a molecule, crucial for understanding the molecule's behavior and reactivity.

Reaction Mechanism

A detailed description of the step-by-step process by which reactants are transformed into products in a chemical reaction.