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56) Verna won a medical malpractice lawsuit for some bad plastic sargery. One year from today, the insurance company will pay her $600,000. If she

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56) Verna won a medical malpractice lawsuit for some bad plastic sargery. One year from today, the insurance company will pay her $600,000. If she immediately deponits it into an accoent that pays 5.. 4 the what will be her account balance 6 years from today? A) $822,611.76 B) $794,400.00 C) $780,466.57 D) $762,000.00 E) $632,400,00 57) Colleen wants her son, Jack, to be a millionaire. lack is four years old today when she deposits 538.000 into an investment account that pays 12% per year for the first 5 years then 6% every year thereatter. The funds in the account will be distnbuted whenever the total reaches $1,000,000. How old will jack be when he gets the money? (Round age down) A) 51 B) 50 C) 59 D) 37 E) 55 58) Today, Floyd borrowed $30,000 to move to Ceveland. The loan has a stated APR of 6.T\% and compounds quarterly. The loan is payable in one lump sum 3 years from today. How much in total interest will floyd pay on this loan? A) 56,443.03 B) 51,654.43 C) $6,030.00 D) $6,617.73 E) $2,205.91 59) The Fun Cooker was introduced as a new product 56 years ago at a price of 539.99. Today, a new, but identical Fun Cooker sells for 5169.99. If the inflation rate over that time was 2.7% per year, which of the following statements is true on an inflation adjusted basis? A) the Fun Cooker is cheaper today B) the Fun Cooker is more expensive today C) the Fun Cooker is the same price today D) the prices cannot be campared E) it depends on the price of the extended warranty 60) Lix plans to sell her dream home 7 years from today at a price of 52,000,000. Dennis offers to buy her home today for 51 million cash. If Lir's opportunity cost of apital is 7.24, should she take the cash offer today? A) no, because she would lose 51 million io value B) no, because the cash offer has a future value of 51,626910 C) yes, because the present value of the future selliag price is 51,229.324 D) no, because the present value of the future selling price is 51,124,832 Ves, because the cash offer has a future value of 51.504,892

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