Suppose You Just Won the State Lottery, and You Have

question 100

Multiple Choice

Suppose you just won the state lottery, and you have a choice between receiving $2, 550, 000 today or a 20-year annuity of $250, 000, with the first payment coming one year from today.What rate of return is built into the annuity? Disregard taxes.

• A) 7.12%
• B) 7.49%
• C) 7.87%
• D) 8.26%
• E) 8.67%

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Definitions:

Intelligence Tests

Standardized assessments designed to measure human intelligence and cognitive abilities.

White Children

A demographic descriptor referring to children belonging to a racial group characterized by lighter skin tones.

Nonwhite Children

A term referring to children who do not identify as white, emphasizing the diversity in racial and ethnic backgrounds.

Crystallized Intelligence

The ability to use learned knowledge and experience.