Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. What is the present value of $500,000 to be paid in 10 years with an interest rate of 8 percent? A. $221,600 B. $231,600

image text in transcribed
4. What is the present value of $500,000 to be paid in 10 years with an interest rate of 8 percent? A. $221,600 B. $231,600 C. $241.600 D. $251,600 5. What is the present value of 10 equal payments of $15,000 in 10 years with an interest rate of 10%? A. $72,169 B. $82,169 C. $92,169 D. $96.169 (Bonus Question) 6. You have just won the state lottery and have two choices for collecting your winnings. You can collet $50,000 today (option 1) or receive $10,100 per year for the next seven years (option 2). A financial analyst has told you that you can earn 10% on your investments. Which alternative should you select? A. Option 1 B. Option 2 C. Option 1 & 2 are equally good for me

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor

5th Edition

1405888210, 9781405888219

More Books

Students also viewed these Accounting questions

Question

Explain in plain language how a cellular network works?

Answered: 1 week ago

Question

List the major prohibitions of the Canadian Human Rights Act .

Answered: 1 week ago