You Have Just Won the Lottery! You Can Either Receive

question 79

Multiple Choice

You have just won the lottery! You can either receive $5,000 a year for 15 years or $50,000 as a lump sum payment today.What is the interest rate on the annuity option?

• A)5.56 percent
• B)5.68 percent
• C)6.20 percent
• D)6.39 percent
• E)6.50 percent

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Definitions:

Genuine Interest

A sincere and deep level of engagement or curiosity in a particular subject, activity, or person, often leading to intrinsic motivation and enjoyment in related tasks.

Psychological Size

A term which is not commonly used in standard references and might be speculative or context-specific. NO.

Morale

Mental and emotional condition with respect to satisfaction, confidence, and resolve; the attitude or spirit of an individual or group resulting in courage, dedication, and discipline; the level of satisfaction one has with intrinsic job factors, such as variety and challenge, feedback and learning, wholeness and meaning, and room to grow, as well as extrinsic conditions of employment, such as fair and adequate pay, job security, and health and safety. See raising morale.

Productivity

The efficiency in which individuals, businesses, or countries produce goods or services, often measured by the output per unit of input.