You've Just Won the $25 Million Lottery

question 7

Multiple Choice

You've just won the $25 million lottery.You are going to receive a check for $1 million today and at the end of every year for the next 24 years.If the interest rate is 10%,the present value of your prize is:

• A) $8,984,744.
• B) $9,984,744.
• C) $12,984,744.
• D) $20,000,000.
• E) $25,000,000.

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Definitions:

Silence Acceptance

The concept that silence can be interpreted as acceptance of an offer under certain conditions in contract law.

Binding Contract

A legally binding contract between two or more parties that can be upheld in court.

Formal Written Agreement

A legally binding contract that is documented in writing and signed by all parties involved.

Implied Acceptance

An agreement to the terms of a contract demonstrated through actions or behaviors, rather than explicitly communicated through words.