You Have Just Received Notification That You Have Won the $1.25

question 29

Multiple Choice

You have just received notification that you have won the $1.25 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100ᵗʰ birthday, 79 years from now. The appropriate discount rate is 6.4 percent. What is the present value of your winnings?

• A) $11,288.16
• B) $9,300.82
• C) $10,309.91
• D) $8,333.33
• E) $10,500.00

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Definitions:

Indians and African Slaves

This term reflects the complex historical interactions and relations between Native American populations and African slaves brought to the Americas, which included alliances, conflicts, and cultural exchanges.

Significant Alliance

A major partnership or agreement between countries, organizations, or individuals that has a substantial impact on the parties involved or on a broader scale.

Middle Colonies

The colonial region in the 17th and 18th centuries that included the modern-day states of New York, New Jersey, Pennsylvania, and Delaware, known for diverse populations and religious tolerance.

New England Colonies

The early 17th-century British settlements on the northeast coast of North America, including Massachusetts, Connecticut, Rhode Island, and New Hampshire, known for their Puritan foundation.