Multiple Choice
Suppose you have a winning lottery ticket and you are given the option of accepting $3000000 three years from now or taking the present value of the $3000000 now. The sponsor of the prize uses a 6% discount rate. If you elect to receive the present value of the prize now the amount you will receive is
A) $2518860.
B) $2591520.
C) $2670000.
D) $3000000.
Correct Answer:
Verified
Correct Answer:
Verified
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