Question
Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $21,000 cash
Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $21,000 cash immediately and a six-period annuity of $7,700 beginning one year from today, or (3) a six-period annuity of $13,300 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
1. assuming interest rate of 7% determine PV value
annunity payment....pv annuity....+ immediate cash....= PV OP
op 1 ? ? ? ?
op 2 ? ? ? ?
op 3 ? ? ? ?
2. which option should alex choose? 1, 2, or 3
3. the weimer comp. wants to accumulate a sum of money to repay certain debts due on 12/31/05. Weimer will make annual deposits of $115,000 into a special bank account at the end of each of the 10yrs beginning 12/31/16. Assuming that the bank account pay 8% interest compoun ded annually, what will be the fund balance after that last payment is made on 13/31/2025?
table function ?
payment ?
n= ?
i= ?
fv= ?
Can you please just answer the the question marks in simple form
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