Suppose You Win a Small Lottery and You Are Given

question 122

Multiple Choice

Suppose you win a small lottery and you are given the following choice: You can (1) receive an immediate payment of $10,000 or (2) three annual payments, each in the amount of $3,600, with the first payment coming one year from now, the second two years from now, and the third three years from now. You would choose to take the three annual payments if the interest rate is

• A)2 percent, but not if the interest rate is 3 percent.
• B)3 percent, but not if the interest rate is 4 percent.
• C)4 percent, but not if the interest rate is 5 percent.
• D)5 percent, but not if the interest rate is 6 percent.

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Definitions:

Chart Location

The placement or positioning of a chart within a document, presentation, or spreadsheet.

Switch Rows Columns

A feature in spreadsheet and charting software that allows users to change the orientation of data, swapping the data in rows with data in columns.

Legend

An area on a chart or map that explains the symbols, colors, or patterns used, making the data easier to understand.

Extract Seconds

The process of isolating and retrieving only the second components from a set of time data.