Lotta Dough Just Won the State Lottery and Has Elected

question 45

Multiple Choice

Lotta Dough just won the state lottery and has elected to receive $50,000 per year for 20 years in the form of an annuity due. What is the present value of this stream of payments if money can earn 8 percent annual interest?

• A) $579,139
• B) $500,000
• C) $530,180
• D) $479,035

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Definitions:

First Letter

The first letter typically refers to the initial character in a sequence of characters, such as those in an alphabet, word, or string of text.

Federal Holidays

Public holidays established by federal law in a country, during which non-essential federal government offices are closed, and employees are paid for the holiday.

Sample Space

The set of all possible outcomes or results in a probabilistic experiment or random trial.

Defective Merchandise

Items that fail to meet quality standards or are damaged, impacting their usability or saleability.