Tessa Won the Lottery for $2,500,000 but Due to a Change

question 132

Multiple Choice

Tessa won the lottery for $2,500,000 but due to a change in state laws she will not be able to collect it for three years. Ralph is willing to give her a lump sum today in return for the payment in three years. If current interest rates are 14% per year, how much will Tessa receive today?

• A) $1,687,430
• B) $5,804,080
• C) $2,500,000
• D) $3,703,860

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Definitions:

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The open discussion and argumentation of topics of public interest, facilitating democratic engagement and information exchange.

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An internal conflict within a country between opposing groups, often over issues of governance, territory, or identity.

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Goods or services produced in the United States and sold to buyers in other countries.

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Being involved with others in an illegal activity or wrongdoing.