1Assume you won a prize and will receive$28,500 for the next 8 years.

a.How much is your prize worth nowif the interest rate is13 percent?(Enter your answer as a whole number rounded to 2 decimal places.)

b.Should you accept $164,000 now in exchange for the future payments?

multiple choice

• No
• Yes

2Calculate the present value of a 6-year annuity of $1,500 per year with payments made at thebeginningof each year if the interest rate is12%.(Enter your answer as a positive number rounded to 2 decimal places. )

3Thinking ahead to retirement, assume you will be able to earn a8 percent return on your investments.If you have saved $290,000 and expect to live17 more years when you retire, calculate the annual annuity you will be able to receive for17 years.(Enter your answer as a positive number roundedto 2 decimal places.)

9A loan calls for 5equal annual payments of$ 2,650. If the loan amount is$ 9,553, the interest rate is:(Round your answer to the nearest whole percent.)

10A project requires an initial investment of$352,980 and its expected life is 7 years. Net operating income from the project is expected to be $29,600 each year, including depreciation of $46,340. The salvage value of theassets is expected tobe $28,600 at the end of the life of the project.

Ignoring income taxes, the payback period is:(Round your answer to 2 decimal places.)