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Assume you have won a lottery prize of $ 5 , 0 0 0 , which works out great since you want to buy a
Assume you have won a lottery prize of $ which works out great since you want to buy a new gaming PC winnings for one year by purchasing a bank CD with one year until maturity. The interest rate on your deposit is year. You plan to work parttime to make up any shortfall in your savings covering the cost of thengaming PC one
a How much money will you have in your bank account at the end of one year?
b What is the real interest rate you expect to earn on your deposit over the next year?
c Will you have enough money from the savings to buy the PC next year?
d If your answer to c is no how many hours of work @ $ hour will be required to make up the shortfall?
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