The Solution to This Problem Requires Time Value of Money

question 13

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations.
-
Winston wins the lottery.He wins $20,000 per year to be paid to him for ten years.The state offers him the choice of a cash settlement now instead of the annual payments for ten years.If the interest rate is 6%,what is the amount the state will offer for a settlement today?

• A)$147,200
• B)$154,440
• C)$175,000
• D)$200,000

---

Definitions:

Complication

An unexpected illness or other condition that develops as a result of a procedure, service, or treatment provided during the patient’s hospital stay.

UHDDS

Uniform Hospital Discharge Data Set, a standard for collecting data on hospital discharges to ensure uniformity and comparability for statistical purposes.

Clinical Information

Data related to a patient's medical history, symptoms, diagnoses, treatments, and outcomes collected during clinical care.

External Causes

Factors or events outside the body that can lead to injury or disease, such as accidents or environmental hazards.