Author Question: In a state-run lottery, where winners are paid in annual installments a. the present value of the ... (Read 78 times)

crazycityslicker · **on:** Jun 30, 2018

In a state-run lottery, where winners are paid in annual installments
a. the present value of the payments is less than the number of dollars won
b. the future value of the winnings is less than the number of dollars won
c. the present value of the payments is greater than the number of dollars won
d. the winner would prefer the annual installments to a lump sum payment made immediately
e. none of the above is correct

Question 2

If the exchange rate has been 1.50 per British pound but now falls to 1.25 per British pound, there will be
a. more U.S. imports from Great Britain because the price of pounds has fallen
b. more exports to Great Britain because the price of pounds has risen
c. fewer exports to Great Britain because the price of the pound has risen
d. more U.S. exports to Great Britain since the price of the dollar has fallen
e. no change in either exports or imports