Examlex

Solved

You Are Considering Two Lottery Payment Options

question 9

Essay

You are considering two lottery payment options:
Option A pays $10,000 today and Option B pays $20,000 at the end of ten years.Assume you can earn 6 percent on your savings.Which option will you choose if you base your decision on present values?
Which option will you choose if you base your decision on future values?
Explain why your answers are either the same or different.


Definitions:

World Health Organization

A specialized agency of the United Nations responsible for international public health.

Center for Disease and Control

Incorrectly named; intended is likely the Centers for Disease Control and Prevention (CDC), a national public health institute in the United States.

Member Nation

A country that is part of a larger political or economic organization or agreement.

Uncontrolled Population Growth

The rapid increase in the number of individuals in a population beyond sustainable limits and resources.

Related Questions