Suppose You Just Won the State Lottery, and You Have

question 23

Multiple Choice

Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today.What rate of return is built into the annuity? Disregard taxes.

• A) 7.12%
• B) 7.49%
• C) 7.87%
• D) 8.26%
• E) 8.67%

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Definitions:

Pay Gap

The disparity in the amount of remuneration between different groups, notably seen in the difference between wages paid to men and women or employees of different ethnicities.

Comprehensive Diversity Programs

Wide-ranging initiatives within organizations aimed at promoting and supporting diversity and inclusion among its members.

Structured Organizations

Organizations designed with clear roles, responsibilities, and reporting lines to achieve efficiency.

Comprehensive Diversity Programs

Initiatives and policies aimed at fostering an inclusive workplace by addressing various dimensions of diversity such as culture, gender, and race.