You Just Won a National Sweepstakes! for Your Prize,you Opted

question 58

Multiple Choice

You just won a national sweepstakes! For your prize,you opted to receive never-ending payments.The first payment will be $12,500 and will be paid one year from today.Every year thereafter,the payments will increase by 3.5 percent annually.What is the present value of your prize at a discount rate of 8 percent?

• A)$166,666.67
• B)$248,409.19
• C)$277,777.78
• D)$291,006.12
• E)$300,000.00

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Definitions:

Femoral Artery

A major artery in the thigh that supplies oxygenated blood to the lower part of the body.

Celiac Trunk

A major artery that supplies blood to the stomach, spleen, liver, and other parts of the abdomen.

Lumen

The internal space or cavity of a tubular structure, such as a blood vessel or the intestine.

Tunica Adventitia

The tunica adventitia is the outermost layer of a blood vessel, consisting of connective tissue, that provides structural support and protection.