Suppose You Win the Lottery and One of Your Payment

question 54

Multiple Choice

Suppose you win the lottery and one of your payment options is to receive $20,000 today,$20,000 one year from now,and $20,000 two years from now.If the interest rate is 5%,what is the present value of this option?

• A)$51,830.26
• B)$54,464.96
• C)$57,188.21
• D)$58,237.71

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Definitions:

Ethical Decisions

Choices made based on moral principles and values aimed at doing what is right and fair.

Ethical, Legal, Social Responsibility

The obligation of individuals and organizations to act in a manner that is morally correct, abides by the law, and benefits society.

Audit Process

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view.

Social Responsibility

The concept of organizations and individuals acting in a manner that considers the long-term impacts of their actions on the environment and society as a whole.