Jessie Won a Lottery and Was Given the Following Choice

question 68

Multiple Choice

Jessie won a lottery and was given the following choice.He could either take $5000 at the end of each month for 25 years,or a lump sum of $700 000.Assuming annual compounding at approximately what interest rate would he would be indifferent between the two choices?

• A)12.3
• B)6)7
• C)7)0
• D)7)3

---

Definitions:

Independent

In statistics, refers to variables that are not affected by or related to the changes in other variables in the context of a study or model.

P(A|B)

P(A|B) represents the conditional probability of event A occurring given that event B has occurred, showing the likelihood of A when B is known to happen.

Business Majors

Academic programs at universities or colleges that specialize in the study of business disciplines such as marketing, finance, and management.

Major In Accounting

An area of academic study focused on the principles and techniques for handling financial information and transactions.