Multiple Choice
You have just won a $5 million lottery to be received in twenty annual equal payments of $250,000. What will happen to the present value of your winnings if the interest rate increases during the next 20 years?
A) It will be worth less.
B) It will be worth more.
C) It will not change.
D) It will increase during the first ten years.
Correct Answer:
Verified
Correct Answer:
Verified
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