A Man Has Won a Lottery Worth $500,000

question 33

Multiple Choice

A man has won a lottery worth $500,000.He invests this money in a fund paying j₂ = 7%.He plans to withdraw $R every 6 months for 25 years,with the first withdrawal made today.What is R?

• A)$21,445.20
• B)$21,316.85
• C)$20,596.00
• D)$20,452.63

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Definitions:

Testing

The process of evaluating a product, service, or system to ensure it meets specified requirements, functions correctly, or identifies any defects.

Intermediaries Shipping

Third-party entities in the supply chain that specialize in the logistics and transportation of goods from manufacturers to consumers or retailers.

Time Utility

The increase in a product's value resulting from its availability at the most appropriate or desired time.

Place Utility

The value added to products by making them available at a location convenient to consumers.