If You Win $1 Million in a Lottery and Are

question 166

Multiple Choice

If you win $1 million in a lottery and are paid in installments,_____

• A)the future value of these payments is $1 million.
• B)the present value of these payments equals $1 million if the interest rate is zero.
• C)the present value of these payments equals $1 million if the interest rate is 10 percent.
• D)the present value of the payments exceeds $1 million if the interest rate is positive.
• E)the future value of the payments is less than $1 million if the interest rate is equal to zero.

---

Definitions:

Selective Attention

The process by which individuals focus on certain stimuli while ignoring others.

Mental Models

Internal representations of the external world that people use to understand and interact with it.

Theatrical Stage

A platform or area designated for the performance of plays, shows, or other dramatic presentations.

Social Category

a group of people who share a common characteristic or attribute.