4 10 pts Otto Co. borrows money on January 1 and promises to pay it back in four semiannual payments of $13,000 each on June 30 and December 31 of both this year and next year. How much money is Otto able to borrow if the interest rate is 8%, compounded semiannually? (Hint: 8% is the annual interest rate, so divide it by 2.) Question 5 10 pts An investment will pay you $10,000 in 10 years and it also will pay you $400 at the end of each of the next 10 years (Years 1 through 10). If the annual interest rate is 6%, how much would you be willing to pay today for this type of investment? (Hint: there are two separate items to calculate.) Question 6 10 pts A college student is reported in the newspaper as having won $10,000,000 in the Texas Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $10 million now. She may either take a lump sum now or she will receive $500,000 at the end of each year for the next 20 years. If the annual interest rate is 6%, how much should she accept as a minimum lump sum instead of the annual payments? https://tarleton.instructure.com/courses/34691/quizzes/165891/take amature.com/cours 2/4