Savannah Has Just Won the State Lottery

question 51

Multiple Choice

Savannah has just won the state lottery. She will receive ten equal annual payments of $15,000, beginning one year from today. Assuming an 8% interest rate compounded annually, the present value of those receipts today is

• A) $80,913.
• B) $100,651.
• C) $108,703.
• D) $102,000.

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Definitions:

Business Practices Act

Legislation designed to ensure fair competition and regulate ethical conduct among businesses within a jurisdiction.

Violation

The act of disobeying or infringing a law, rule, agreement, or code of conduct.

Provincial Legislation

Laws and regulations enacted by the legislative authority of a province or territory within a federal system of government.

Financial Agency

A business entity that provides advisory or intermediary services in financial transactions.