You've just won the "I'm Feelin' Lucky Sweepstakes!! They offer two payout choices: 1) $500,000 now OR 2) $50,000 at the end of every year for 25 years What interest rate have the sponsors assumed in structuring these alternatives? Select one: O a. 8.78% O b. 9.98% O c. 8.07% O d. 9.07% O e. 10.00% You've invested your savings at 8% and been able to accumulate $500,000. If you withdraw $50,000 at the end of every year, how long until the balance has been reduced to zero? Select one: O a. 20.91 years O b. 18.49 years Oc 10.00 years O d. 13.91 years Oe. 7.63 years
You've just won the "I'm Feelin' Lucky Sweepstakes!! They offer two payout choices: 1) $500,000 now OR 2) $50,000 at the end of every year for 25 years What interest rate have the sponsors assumed in structuring these alternatives? Select one: O a. 8.78% O b. 9.98% O c. 8.07% O d. 9.07% O e. 10.00% You've invested your savings at 8% and been able to accumulate $500,000. If you withdraw $50,000 at the end of every year, how long until the balance has been reduced to zero? Select one: O a. 20.91 years O b. 18.49 years Oc 10.00 years O d. 13.91 years Oe. 7.63 years
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:D
n
You've just won the "I'm Feelin' Lucky Sweepstakes!! They offer two payout choices:
1) $500,000 now OR
2) $50,000 at the end of every year for 25 years
What interest rate have the sponsors assumed in structuring these alternatives?
Select one:
O a. 8.78%
O b. 9.98%
O c. 8.07%
O d. 9.07%
O e. 10.00%
You've invested your savings at 8% and been able to accumulate $500,000. If you withdraw $50,000 at the end of
every year, how long until the balance has been reduced to zero?
Select one:
O a. 20.91 years
O b. 18.49 years
OC 10.00 years
O d. 13.91 years
Oe. 7.63 years
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