You Will Receive $5,000 a Year in Real Terms for the Next

question 69

Multiple Choice

You will receive $5,000 a year in real terms for the next 5 years. Each payment will be received at the end of the period with the first payment occurring one year from today. The relevant nominal discount rate is 9.625 percent and the inflation rate is 2.3 percent. What are your winnings worth today in real dollars?

• A) $20,413
• B) $19,367
• C) $20,781
• D) $21,500
• E) $19,137

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Alcohol

A psychoactive substance found in beverages such as beer, wine, and spirits, known for its ability to alter mood and behavior.

Prophylactic Treatment

Preventive medical treatment aimed at deterring disease onset or progression.

Sexually Transmitted Diseases

Infections that are primarily spread through sexual contact, also known as sexually transmitted infections (STIs).

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