A Lottery Winner Will Receive $1 Million at the End

question 45

Multiple Choice

A lottery winner will receive $1 million at the end of each of the next ten years. What is the present value (PV) of her winnings at the time of her final payment, given that the interest rate is 8.75% per year?

• A)$6.49 million
• B)$6.94 million
• C)$7.96 million
• D)$6.56 million

---

Definitions:

Annual Physical Exam

A yearly health check-up with a healthcare provider intended to prevent health problems and maintain wellness.

Established Patient

A patient who has been seen by a healthcare provider in the same practice within a specific period, typically within the past three years.

ICD-10-CM

The tenth revision of the International Classification of Diseases, Clinical Modification, used for coding and classifying morbidity data for diagnostic and insurance purposes.

Codes

A system of symbols or numbers used for identification or classification, commonly found in various contexts such as computing or healthcare.