You Have Just Won the Lottery and Will Receive $540,000

question 50

Multiple Choice

You have just won the lottery and will receive $540,000 as your first payment one year from now.You will receive payments for 26 years.The payments will increase in value by 4 percent each year.The appropriate discount rate is 10 percent.What is the present value of your winnings?

• A)$6,221,407
• B)$6,906,372
• C)$7,559,613
• D)$7,811,406
• E)$8,003.11

---

Definitions:

Dependent

A variable in an experiment or model that is affected by other variables, known as independent variables.

Frequency of Car Accidents

The number of occurrences of car accidents within a specified period, often used to assess risk and improve safety measures.

Association

A statistical relationship between two or more variables.

Age Group

A division of populations based on age, used in statistical analysis to compare different demographic segments.