You Won the Lottery and Have a Number of Choices

question 46

Multiple Choice

You won the lottery and have a number of choices as to how to take the money. Which choice yields a greater present value?

• A)$12,000 a year at the end of each of the next 6 years using a 6% discount rate
• B)$53,500 (lump sum)now using a 6% discount rate
• C)$90,000 (lump sum)7 years from now using a 6% discount rate
• D)$92,000 (lump sum)7 years from now using an 8% discount rate

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Definitions:

Clear Expression

The act of conveying ideas, thoughts, or feelings in a way that is easy to understand.

Patriarchy

A social system in which males hold primary power, predominating in roles of political leadership, moral authority, social privilege, and control of property.

Supernatural Being

An entity or force beyond the natural world, often of religious, mythological, or spiritual significance.

Supreme Civil Ruler

The highest authority within the civil (non-religious) domain of governance, often referring to a president, prime minister, or monarch.