Prizes Are Often Not "Worth" as Much as Claimed

question 30

Multiple Choice

Prizes are often not "worth" as much as claimed. Place a value on a prize of $5,000,000 that is to be received in equal payments over 20 years, with the first payment beginning today. Assume an interest rate of 7%.

• A) $2,833,898.81
• B) $2,911,015.68
• C) $2,609,144.14
• D)$2,738,304.13

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Definitions:

Chromosomal Pairs

The sets of two chromosomes in each cell of an organism, with one inherited from each parent, crucial for genetic traits and reproductive processes.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA, carrying genetic information.

Nucleus

In biology, the membrane-bound organelle found in eukaryotic cells that contains most of the cell's genetic material.

Cell

The basic structural, functional, and biological unit of all known living organisms.