You just won the lottery! The prize is $2000 paid at the beginning of the year for the next 10 years. What is the value of the lottery annuity today with an interest rate of 4.4%?

  

 You plan on retiring 40 years from today and spend time in retirement playing 'Among Us'. In order to attain your goal of retiring comfortably, you plan on making monthly deposits into a savings account starting at the end of the month. As soon as you retire, you hope to purchase your dream car for $25,000 with cash. After that, you will need $6,000 each month to live comfortably. You predict that you will die 20 years after retirement. Savings account rate is 5% compounded quarterly. How much must you save each month to make this possible?

 

 You and your golden hawk soulmate have decided to purchase a house in Waterloo that you can live in for the next three years and then rent to students. The house you purchase is $265,000 and you make a down payment of $35,000. Interest is 6.50% compounded semiannually. The mortgage has an amortization period of 25 years. What is the size of your monthly mortgage payment (assuming you begin payments at the end of this month)?

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1 Lottery Riches Today To find the present value of your annuity we need to discount the future paym... View the full answer