You Just Won the Lottery,and You Have a Choice Between

question 84

Multiple Choice

You just won the lottery,and you have a choice between receiving $3,500,000 today or a 10-year annuity of $500,000,with the first payment coming 1 year from today.What rate of return is built into the annuity?

• A)6.72%
• B)7.07%
• C)7.43%
• D)7.80%

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Definitions:

Dopamine

A neurotransmitter involved in many functions, including mood, motivation, reward, and the coordination of movement, and implicated in several mental health disorders.

Benzodiazepines

A class of psychoactive drugs known for their sedative, hypnotic (sleep-inducing), anxiolytic (anti-anxiety), anticonvulsant, and muscle relaxant properties.

GABA

Gamma-aminobutyric acid, a neurotransmitter in the brain that plays a key role in regulating nerve excitability and anxiety.

Operant Conditioning

A process of learning in which modifications in the force of behavior are achieved by the use of reinforcement or punishment.