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2 points eBook Hint Print References Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving
2 points eBook Hint Print References Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $92,000 cash immediately, (2) $36,000 cash immediately and a six-year annual annuity of $9,500 beginning one year from today, or (3) a six-year annual annuity of $18,600 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $185,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 You recently won a lottery and have the option of receiving one of the following three prizes: (1) $92,000 cash immediately, (2) $36,000 cash immediately and a six-year annual annuity of $9,500 beginning one year from today, or (3) a six-year annual annuity of $18,600 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? Note: Round your final answers to nearest whole dollar amount. Annuity Payment Option 1 Option 2 Option 3 Which option should you choose? PV Annuity + + Show less Arswer each of the following independent questions: 1. You recertly worl a lottery and have the option of receiving one of the following three prizes, (0 $92,000 cash immediately. (2) annuty of \$:B, 600 beginning one year fom today. Assuming an interest tate of 6% compounded annualy, defermine the present vilue for the above options. Which option should you choose? 2. A compary wants to occumulate a sum of money to repay certain debts tue in the future. The compary will make annual deposits of $195,000 into a special bank account of the end of esch of 10 years. Assuming the bank account pays 7$ interest compounded annually, what wal be the fund balance affer the last payment is made in ben yeas? Camplete this question by entering your answers in the tabs below. Arswer each of the following independent questions: 1. You recertly worl a lottery and have the option of receiving one of the following three prizes, (0 $92,000 cash immediately. (2) annuty of \$:B, 600 beginning one year fom today. Assuming an interest tate of 6% compounded annualy, defermine the present vilue for the above options. Which option should you choose? 2. A compary wants to occumulate a sum of money to repay certain debts tue in the future. The compary will make annual deposits of $195,000 into a special bank account of the end of esch of 10 years. Assuming the bank account pays 7$ interest compounded annually, what wal be the fund balance affer the last payment is made in ben yeas? Camplete this question by entering your answers in the tabs below
2 points eBook Hint Print References Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $92,000 cash immediately, (2) $36,000 cash immediately and a six-year annual annuity of $9,500 beginning one year from today, or (3) a six-year annual annuity of $18,600 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $185,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 You recently won a lottery and have the option of receiving one of the following three prizes: (1) $92,000 cash immediately, (2) $36,000 cash immediately and a six-year annual annuity of $9,500 beginning one year from today, or (3) a six-year annual annuity of $18,600 beginning one year from today. Assuming an interest rate of 6% compounded annually, determine the present value for the above options. Which option should you choose? Note: Round your final answers to nearest whole dollar amount. Annuity Payment Option 1 Option 2 Option 3 Which option should you choose? PV Annuity + + Show less
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