You Won the Lottery and Can Receive Either (1)$60,000 Today,or

question 99

Multiple Choice

You won the lottery and can receive either (1) $60,000 today,or (2) $10,000 one year from today plus $25,000 two years from today plus $35,000 three years from today.You plan to use the money to pay for your child's college education in 15 years.You should

• A) take the $60,000 today because of the time value of money regardless of current interest rates.
• B) take option two because you get $70,000 rather than $60,000 regardless of current interest rates.
• C) take the $60,000 today only if the current interest rate is at least 16.67%.
• D) take the $60,000 today if you can earn 6.81% per year or more on your investments.

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Definitions:

Representative Clade

A group of organisms consisting of a common ancestor and all its lineal descendants, representing a single branch on the tree of life.

Supergroup

In biology, a large grouping of diverse organisms sharing common evolutionary traits, above the level of kingdom in the taxonomic hierarchy.

Rhizarians

A group of mostly unicellular eukaryotic organisms, characterized by their amoeba-like cell structure, often possessing elaborate shell-like coverings.

Representative Clade

A group of organisms that includes an ancestor and all its descendants, representing a single branch on the tree of life.