Asked by Tabatha Holmes on May 30, 2024
Verified
Sam has won a lottery. He can take $5,000 now or $5,500 in one year. If money can earn 8%, which option should he choose?
Lottery
A form of gambling involving the drawing of numbers at random for a prize.
Earn
Earn refers to receiving money in exchange for work or services rendered, or through investment returns.
- Assess investment choices considering interest rates and durations.
Verified Answer
CT
Learning Objectives
- Assess investment choices considering interest rates and durations.