All Else Equal,at What Interest Rate Would the PDV of a Lottery

question 66

Multiple Choice

All else equal,at what interest rate would the PDV of a lottery prize that pays $1,000,000 today and $1,000,000 each year for the next 19 years be equal to $10,000,000?

• A) 5.26%
• B) 7.75%
• C) 8.92%
• D) 50.00%

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Definitions:

Support Trees

Structures or physical supports used in agriculture and horticulture to support plants, vines, and trees to ensure proper growth and development.

Corresponds

To be in agreement or conformity with something else; often refers to having a direct relationship or correlation between entities.

Common-sense Aphorisms

Refers to simple, traditional sayings that express a truth based on common sense or practical experience.

Growth Rate

A measure of the increase in size, number, value, or strength of something over a particular period of time.