What Is the Present Value of a Lottery Paid as an Annuity

question 108

Multiple Choice

What is the present value of a lottery paid as an annuity due for twenty years if the cash flows are $250,000 per year and the appropriate discount rate is 7.50%?

• A)$5,000,000.00
• B)$3,186,045.39
• C)$2,739,769.55
• D)$2,548,622.84

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Definitions:

Separate Spheres

A gender division theory suggesting that men and women have different and distinct roles in society, with men dominating the public sphere and women the private or domestic one.

Intrinsic Marriages

Marriages based on internal factors like personal fulfillment and genuine emotional connections, rather than external factors.

Vital

Essential or absolutely necessary for life or to the function of something.

Total Marriages

The cumulative number of legally recognized unions between individuals, typically measured within a specific geographical area and time frame.