If you were to win the lottery (ignore tax consequences) and were given the options of choosing the money immediately (lump sum) or a series of payments (annuity) for ten years, which would you choose to take or which would be the smartest option to take?

Q: Mr. John borrows money from a friend with simple interest of 12%, find the present worth of $25,000…

A: If the interest is simple, then the formula used is A=P(1+rt), where A is the final amount, P is the…

Q: A rather wealthy man decides to arrange for his descendants to be well educated. He wants each child…

A: Given values:Annual education expense (CF) Discount rate (r) Generational spacing = 25 yearsDelay…

Q: Castle has just finished his thirty-second year with his company and is getting ready to retire.…

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Q: Your uncle still wouldn't help you after you found your new job. The bills are right this month, so…

A: Solution:- Your uncle still wouldn't help you after you found your new job. The bills are right this…

Q: Consider a credit card with a balance of $8000 and an APR of 21%. If you want to make monthly…

A: According to the given data, find the total amount:

Q: 2.7

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Q: Simon starts a retirement account where he will place $50 into the account on the first month and…

A: Given-  Ist month deposit= $50  2nd month deposit= $55 ... .... and so on.

Q: Kayla would like to have $10,000 saved 15 years from now. If she finds an account that offers a…

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Q: interest (to the nearest dollar) would be saved on the following loan if the home were financed for…

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Q: Suppose you have budgeted $ 1130 a month towards a mortgage. If you are offered a 30 year mortgage…

A: Given that, the monthly payment towards a mortgage is $1130, the number of years is 30 years and the…

Q: fter reading this chapter, it isn't surprising that you're becoming an investment wizard. With your…

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Q: A no-load mutual fund specializing in health care stocks has a portfolio of stocks with a market…

A: The objective of this question is to calculate the net asset value (NAV) per share of a mutual fund.…

Q: Suppose that the total interest that will be paid on a 25-year mortgage from a home loan of $130,000…

A: The loan = $ 130,000Interest is = $ 380,000Total loan and the interest= ( 130,000 + 380,000)= $…

Q: Wendy has set up an ordinary annuity to save for a retirement home in 10 years. If her monthly…

A: Monthly payments = $400Ordinary annuity has an annual interest rate = 5.4%Time = 10 years

Q: Hi! how much would need to be placed into the account initially if $16,422 is the amount Karen would…

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Q: The minimum monthly payment for Brian's credit card is 3.5% of his balance or $25, whichever is…

A: Brian's balance at the end of his billing cycle=$722 The minimum monthly payment for Brian's credit…

Q: Suppose you deposited ​$40 per month into a savings plan for 5 years and at the end of that period…

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Q: If you are selling your house with a local realtor who requires a 3% commission fee what can you…

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Q: A $1,000,000 lottery prize pays $50,000 per year for the next 20 years. If the current rate of…

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Q: You can afford a monthly payment of $375 for a new car loan.  You want the loan to last for 5 years…

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Q: A bond with face value $10,000 simple interest 6.45% and a term for 12 years is originally bought by…

A: Solution: Assuming Linda bought the bond on settlement date. Net profit for Linda = 11,400 + 645 +…

Q: Suppose that you decide to buy a car for $59,000, including taxes and license fees. You saved…

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Q: Suppose that you borrow ​$3000.00 from a friend and promise to pay back ​$4755.00 in 3 years.…

A: It is given that the principal is 3000, balance is 4755 and time is 3 years. The formula to evaluate…

Q: Suppose you want to have $500,000 for retirement in 30 years. Your account earns 6% interest. How…

A: Suppose you want to have $500,000 for retirement in 30 years.  Future ValueFV= $500000Time t=30…

Q: If you plan to buy a car in 2 years and expect to need $2000 for a down-payment, how much should you…

A: Future value of ordinary annuity  FV=R1+in-1i Where 'R' is regular periodic deposit amount, 'i' is…