Assume That You Have Just Won $5,000,000 in the Lottery

question 130

Multiple Choice

Assume that you have just won $5,000,000 in the lottery and will receive $250,000 per year for the next 20 years. How much is your prize worth today if the interest rate is 8%?

• A)$1,072,731
• B)$2,454,525
• C)$2,185,219
• D)$1,165,250

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Definitions:

Dominican Republic

A country located on the island of Hispaniola in the Caribbean region, sharing the island with Haiti.

Cuban Invasion

Commonly refers to the Bay of Pigs Invasion in 1961, where a force of Cuban exiles, sponsored by the U.S., attempted to overthrow the Cuban government of Fidel Castro.

Urban Areas

Regions characterized by higher population density and vast human features in comparison to areas surrounding it.

Developing

A term often used to describe countries or regions with a lower level of industrialization, economic development, and lower standard of living compared to more developed countries.