Edward Hughes Has Just Won the State Lottery and Has

question 47

Multiple Choice

Edward Hughes has just won the state lottery and has the following three payout options for after-tax prize money:
1) $166,000 per year at the end of each of the next six years
2) $306,000 (lump sum) now
3) $518,000 (lump sum) six years from now
The annual discount rate is 9%.Compute the present value of the second option.(Round to nearest whole dollar. )
Present value of $1:

• A)$684,000
• B)$103,600
• C)$414,400
• D)$306,000

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Definitions:

Physical Violence

Involves the use of physical force with the intention of injuring, harming, or killing others.

Abusive Families

Households characterized by behaviors where one or more members harm or neglect others, leading to physical, emotional, or psychological damage.

Empathy

The ability to understand and share the feelings of another person, essentially putting oneself in another’s shoes.

Vulnerability

The susceptibility to being wounded or harmed, either physically, emotionally, or socially.