Suppose You Win a Small Lottery and You Are Given

question 65

Multiple Choice

Suppose you win a small lottery and you are given the following choice: You can receive (1) an immediate payment of $5,000 or (2) two annual payments, each in the amount of $2,700, with the first payment coming one year from now, and the second payment coming two years from now. You would choose to take the two annual payments if the interest rate is

• A)2 percent, but not if the interest rate is 3 percent.
• B)3 percent, but not if the interest rate is 4 percent.
• C)4 percent, but not if the interest rate is 5 percent.
• D)5 percent, but not if the interest rate is 6 percent.

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Definitions:

Electron Configuration

The positioning of electrons in the atomic or molecular orbitals pertaining to an atom or a molecule.

Arsenic

A chemical element with symbol As, known for its various allotropes and toxic compounds, used in semiconductors, pesticides, and historically as a poison.

Electron Configuration

The distribution of electrons of an atom or molecule (or other physical structure) in atomic or molecular orbitals.

Nitrogen

A colorless, odorless, tasteless gas that constitutes 78% of the Earth's atmosphere; it is a nonmetallic element with symbol N.