On a Whim You Purchased a Scratch-Off Lottery Ticket at the Gas

question 98

Multiple Choice

On a whim you purchased a scratch-off lottery ticket at the gas station. It must have been your lucky day because you won $1,500,000. Being logical and rational you decide to invest the money at 6% for 11 years until you are ready to start a family. At the end of 11 years, how much will your investment be worth? Future Value of $1
Future Value of Annuity of $1

• A)$22,458,000
• B)$2,847,000
• C)$790,500
• D)$3,018,000

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Definitions:

Economic Theory

A structured explanation or framework about how economies function, including principles and models to understand economic behavior and markets.

Abstract Ideas

Concepts or notions that are not tangible or concrete, often involving complex thinking processes and creativity.

Real-World Situation

Circumstances or events that occur in the actual world, outside of controlled or theoretical environments.

Normative Statement

A statement that expresses a value judgment or opinion, not a fact, and suggests how things should be.