Suppose You Win a Small Lottery and You Are Given

question 65

Multiple Choice

Suppose you win a small lottery and you are given the following choice: You can receive (1) an immediate payment of $5,000 or (2) two annual payments, each in the amount of $2,700, with the first payment coming one year from now, and the second payment coming two years from now. You would choose to take the two 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:

Disjunctive Syllogism (DS)

A form of logical argument where, from two disjunct statements, the denial of one leads to the affirmation of the other.

Constructive Dilemma (CD)

A form of argument where, given premises that jointly imply two conclusions, if one of them is true, then so is the other.

Atomic Sentences

Simple statements in logic that contain no logical connectives or quantifiers, expressing a basic claim.

Truth Table

A mathematical table used in logic to determine the veracity of various propositions under all possible scenarios.