In most state-run lotteries,
a. the winner receives a single lump-sum payment
b. the present value of the winnings is less than the number of dollars won
c. the present value of the winnings exceeds the number of dollars won
d. winners are paid the present value of the total amount won
e. winners are paid only in the distant future
Question 2
Imagine that there are only two nations in the world, the United States and Mexico. If Mexico experiences a drop in the price of foreign exchange, people in Mexico will
a. have to buy more U.S. currency, because prices of imports from the United States will have increased
b. end up buying less U.S. currency, because U.S. prices on goods will decrease to everyone
c. be able to afford less U.S. currency, and imports from the United States will be more expensive
d. be able to afford more U.S. currency, and imports from the United States will be cheaper
e. be able to afford more U.S. currency, and imports from the United States will be more expensive
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Present Value Formula: Amortization Schedule