the end of each 6-month period for 6 years if the inter- est rate is 6% compounded semiannually. 5. Suppose a state lottery prize of $5 million is to be paid in 20 payments of $250,000 each at the end of each of the next 20 years. If money is worth 10% compounded annually, what is the present value of the prize? 6. How much is needed in an account that earns 8.4%
the end of each 6-month period for 6 years if the inter- est rate is 6% compounded semiannually. 5. Suppose a state lottery prize of $5 million is to be paid in 20 payments of $250,000 each at the end of each of the next 20 years. If money is worth 10% compounded annually, what is the present value of the prize? 6. How much is needed in an account that earns 8.4%
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
Related questions
Question
#5 please explain each step

Transcribed Image Text:RL
1
(1.01)-14
$2000
$26,007.41
0.01
=7.17
585,230.28
payment periods; k = 20 deferral periods
MAX
1-(1+ i)"7
R
(1+i)-k
$23,614.83
3. Find the present value of an annuity of $6000 paid at
the end of each 6-month period for 8 years if the inter-
est rate is 8% compounded semiannually.
4. Find the present value of an annuity that
the end of each 6-month period for 6 years if the inter-
est rate is 6% compounded semiannually.
5. Suppose a state lottery prize of $5 million is to be paid
in 20 payments of $250,000 each at the end of each of
the next 20 years. If money is worth 10% compounded
annually, what is the present value of the prize?
6. How much is needed in an account that earns 8.4%
pays
$3000 at
compounded monthly to withdraw $1000 at the end of
each month for 20 years?
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