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3. Carrie Tune will receive $ 2 9,500 for the next 3 0 years as a payment for a new song she has written. If
3. Carrie Tune will receive $29,500 for the next 30 years as a payment for a new song she has written. If a 10 percent rate is applied, should she be willing to sell out her future rights now for $292,000.00?
4. The Clearinghouse Sweepstakes has just informed you that you have won $800,000. The amount is to be paid out at the rate of $20,000 a year for the next 40 years. With a discount rate of 9 percent, what is the present value of your winnings?
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