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

question 96

Multiple Choice

Jonas won a lottery that will pay him $100,000 at the end of each of the next twenty years.Zebra Finance has offered to purchase the payment stream for $1,359,000.What interest rate (to the nearest percent) was used to determine the amount of the payment?

• A)7%.
• B)6%.
• C)5%.
• D)4%.

---

Definitions:

Voice-Activated Software

Computer applications or systems that are controlled through vocal commands rather than traditional manual inputs.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Type II Error

A statistical mistake of failing to reject a false null hypothesis; also known as a false negative.

Expected Decision Error Costs

The anticipated costs associated with making incorrect decisions, often used in risk assessment and decision-making processes.