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:

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, driving evolutionary change.

Menopause

The natural or induced process in females marking the end of their reproductive years, characterized by the cessation of menstrual cycles.

Trivers-Willard Hypothesis

A theory suggesting a correlation between parental condition and the investment in male or female offspring; healthier parents may produce more males, while less healthy parents may produce more females.

Offspring Condition

The physical and health status of an organism's offspring, influenced by genetic, environmental, and parental factors.