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:

Women

Female human adults, also referring to gender issues, rights, and contributions in societal, economic, and cultural contexts.

Teenagers

A developmental stage that generally covers the period of life from puberty to legal adulthood.

Distant Human Memories

Long-term memories of events, experiences, or facts that occurred in the far past.

Sigmund Freud

Sigmund Freud, an Austrian neurologist, established psychoanalysis, a therapeutic technique for addressing psychopathology by engaging in conversation between a psychoanalyst and their patient.