Suppose You Have 3 Years to Live and You Value

question 15

Multiple Choice

Suppose you have 3 years to live and you value each year of life at $7 million but have a discount rate of 5%.How much do you value the rest of your life in today's dollars?

• A) $20 million
• B) $19.06 million
• C) $21 million
• D) $18.14 million

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Definitions:

Luteinizing Hormone

A hormone produced by the anterior pituitary gland that triggers ovulation in females and stimulates testosterone production in males.

Testosterone Production

The synthesis of the primary male sex hormone, testosterone, primarily in the testes, which influences male physical features and reproduction.

GnRH

Gonadotropin-releasing hormone, a peptide hormone responsible for the stimulation of the pituitary gland to release gonadotropins, which in turn regulate reproductive processes.

Hypothalamohypophysial Portal System

Series of blood vessels that carries blood from the area of the hypothalamus to the anterior pituitary gland; originates from capillary beds in the hypothalamus and terminates as a capillary bed in the anterior pituitary gland.