If You Win $1 Million in a Lottery and Are

question 1

Multiple Choice

If you win $1 million in a lottery and are paid in installments, _____.

• A)the future value of these payments is $1 million
• B)the present value of these payments equals $1 million if the interest rate is zero
• C)the present value of these payments equals $1 million if the interest rate is 10 percent
• D)the present value of the payments exceeds $1 million if the interest rate is positive
• E)the future value of the payments is less than $1 million if the interest rate is negative

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Definitions:

United Nations Convention

An international treaty or agreement formed under the auspices of the United Nations.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that sets general rules for international sales of goods.

English Common Law

A legal system originating in England, characterized by the doctrine of judicial precedent, where past court decisions guide future rulings.

Rubbermaid Corp.

A manufacturer specializing in household and commercial products, known for its innovative and durable plastic goods.