4. A certain investment will pay you $10,000 in 10 years. It will ALSO pay you $400 at the end of each of the next 10 years (i.e. years 1 thru 10). If interest rates are 6%, how much would you be willing to pay today for this type of investment? #212 5. A man is listed in the newspaper as having won $10,000,000 in the Kansas State Lottery. However, as is always the custom with lotteries, he does not actually receive the entire $10 million now. Instead he will receive $500,000 at the end of the year for each of the next 20 years. If the interest rate is 6%, what is the present value (i.e. the 'true amount') that he won? (ignore taxes). 6. If you receive a loan today of $12,500 for an automobile, how much will you have to pay at the end of each month if the term of the loan is 40 months and the annual interest rate is 12%? (first loan payment is due at the end of the first month). Interest is compounded monthly. What if the term of the loan is only 20 months? RES ACCEL