The State Lottery Has Just Informed You That You Have

question 72

Multiple Choice

The state lottery has just informed you that you have won $1 million to be paid out in the amount of $50,000 per year for the next 20 years. With a discount rate of 12%, what is the present value of your winnings?

• A) $221,950
• B) $398,150
• C) $373,450
• D) $392,150

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Definitions:

PLC

Programmable Logic Controller, an industrial digital computer adapted for the control of manufacturing processes, such as assembly lines, robotic devices, or any activity that requires high reliability, ease of programming, and process fault diagnosis.

Tandem Axle

A configuration of two axles situated close together in a vehicle to support more weight and improve stability, often found in trucks and trailers.

Drive Axle Brakes

Braking systems located on the drive axles of a vehicle, crucial for transferring braking force to the wheels to slow or stop the vehicle.

ABS Configuration

A setup in a vehicle's braking system that prevents the wheels from locking up by regulating brake pressure, enhancing control during sudden stops.