You Have Just Won a Lottery! You Will Receive $50,000

question 121

Multiple Choice

You have just won a lottery! You will receive $50,000 a year beginning one year from now for 20 years. If your required rate of return is 10%, what is the present value of your winning lottery ticket?

• A) $418,250
• B) $425,700
• C) $444,640
• D) $453,850

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Definitions:

Biological Forces

Natural factors influencing or determining the behavior and development of organisms, including genetic, neurochemical, and evolutionary components.

Latency Stage

A phase in Freud's psychosexual development theory, typically between ages 6 and puberty, where sexual urges and behaviors are less prominent.

Health Club

A facility equipped with exercise equipment, and sometimes offering classes and personal training, aimed at physical fitness and wellness.

Older Adult

An individual who is typically defined as being 65 years of age or older, often with considerations of their specific health and social needs.