Suppose you won a lottery 600000 interest of 0.05 percent, they offered you many choices the first one is to take the 600000 immediately • 2nd choice to take 110000 forever • 3rd choice to take 90000 for 7 years beginning now. • 4th choice is to accept 3200000 at the end of the 20 years • 5th choice if you put 600000 in a saving account how much you will have after 30 years interest is compound quarterly what is the value of the money from choice number 2? what is the value of the money from choice number 3? what is the value of the money from choice number 4? what is the value of the money from choice number 5?

Q: You make a payment of of $ 24 with Apr of 5.2 % After 90 years what will you have in the account…

A: given, pmt = $24 apr = 5.2% y=90 n =12

Q: Your brother has offered to give you either $65,000 today or $130,000 in 13 years. If the interest…

A: Solution: When an amount is receivable, every person will choose to receive higher amount. So, in…

Q: Complete using manaul computation You have 20 years left for your retirement. You wish to…

A: The time value of money is a concept in finance that evaluates the worth of future expected cash…

Q: How much would you have at the end of 5 years if you choose to take the $ 6640 offer now, and you…

A: N = 5 years Investment = 6640 Interest rate = 5.8% compounded continuously

Q: Suppose you are given $1000 to invest. You have two options: a savings bond that offers 10% simple…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: ou iust invested 549.000 that you received as an insurance settlement. How much more will this…

A: Money that is invested today earns interest. This makes the future value of money more than present…

Q: The $9.4M lottery that you just won actually pays ($9.4M divided by 40) per year for 40 years. If…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: The winner of a $10,000,000 prize has the following payment choices. If the interest rate is 10%,…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Ms Investor invests a lump sum of R600 000 and wants to withdraw an amount of R75 000 at the end of…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Assume you win a lottery, and you are offered the following stream of payments by the lottery…

A: Future value of cash flows will be reflective of the value of cash flows in the future after…

Q: Present Value Computation You will receive $4,500 in 3 years. What is the present value if you can…

A: Present value = Amount*PV$1(n=3, i=8%)

Q: a. If the first payment is made four years from now, what is this grand prize really worth today?…

A: Present Value is the value of money in today at zero period for all the payments which is received…

Q: Just suppose your won a lottery of $1,000,000 and you have the option to receive it today or in 2…

A: Step 1 The value of a sum of money today is known as its present value.

Q: The buyer of a certain machine may pay either P50k cash down payment & P10k annually for the next 6…

A: The time value of money refers to the fact that the worth of the sum of money today is more than its…

Q: 7) After with two investment options. Which investment yields the greater return over 10 years? 7%…

A: Option 1) 7% compounded monthly  Future Value = Present Value * (1+r)^nWhere,r = rate of interest…

Q: hat is the present value of a cash flow stream of 1,000 per year annually for 12 years that then…

A: Present value is the equivalent value of money today based on the based on the future cash flow from…

Q: What is the present value if you can earn 8% interest compounded annually?

A: NOTES: PV : Present Value FV : Future Value r : rate n : number of years.

Q: As the prize in a contest, you are offered $19,000 now or $45,300 in 9 years. If the money can be…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: You have just won the lottery and will receive $580,000 in one year. You will receive payments for…

A: Data given: Cash flow Year 1 (CF1) =$580000 n=28 years Growth (g)=3% Discount rate (r) =11%…

Q: You will receive $5,500 in 2 years. When you receive it, you will invest it for 4 years at an…

A: Formula:- F = A (1+r)n where , F = future value A = initial investment r = interest rate n = time…

Q: The $55.0 million lottery payment that you have just won actually pays $2.2 million per year for 25…

A: The present value represents the current worth of future cash flows, accounting for the time value…

Q: What is the future value of $6000 earning 18% interest, compounded monthly, for 4 years? (Round your…

A: Given information, Present value (PV) = $6,000Annual interest rate (r) = 18% or 0.18Time (t) = 4…

Q: A lottery corporation sells a ticket for a chance to win $500,000. If you win, the prize winnings…

A: Present Value is the current price of future value which will be received in near future at some…

Q: The $45 million lottery prize that you have just won actually pays out $4.5 million a year for 20…

A: The topic is related to financial mathematics, more precisely to the process of calculating a cash…

Q: suppose you decide to deposit $6400 into w 3 year cd wirh a 2.5 apy the value of the cd after a year…

A: Payment = p = $6400Interest Rate = r = 2.5%Time = t = 1

Q: ow much money will you have 13 years from now?

A: Future Value: It is computed by the product of the present amount and the future value factor.  It…

Q: Assume you win a lottery, and you are offered the following stream of payments by the lottery…

A: Future value of cash flows will be reflective of the value of cash flows in the future after…

Q: You have just won a two-part lottery! The first part will pay you $50,000 at the end of each of the…

A: The idea of present value suggests that the worth of a future sum of money is lower compared to its…

Q: Problem 1: You can choose between two different investments: (A) an annuity that pays $10,000 each…

A: Computation of present value of investments:  Interest rate is 5% Annuity: Hence, the present value…