Jane Wins $100,000 in the Lottery and Immediately Uses Her

question 99

Multiple Choice

Jane wins $100,000 in the lottery and immediately uses her winnings to open a donut shop. Her direct costs for the first year are $50,000. Alternatively, Jane could have placed her lottery winnings in a savings account earning 10 percent annual interest. Jane's total cost is

• A) $60,000.
• B) $50,000.
• C) $160,000.
• D) $45,000.
• E) $55,000.

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