You Have Just Won a $5 Million Lottery to Be

question 55

Multiple Choice

You have just won a $5 million lottery to be received in twenty annual equal payments of $250,000.What will happen to the present value of your winnings if the interest rate increases during the next 20 years?

• A)it will be worth less
• B)it will be worth more
• C)it will not change
• D)it will increase during the first ten years