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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)
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,...
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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?
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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