Chapter 5 HW 6 Answer each of the following independent questions Alex Meir recently won a lonery and has the option of receiving one of the following three prizes: $82,000 cash immediately (2) $30.000 cash immediately and a six-period annuity of $9.000 beginning one year from today or a six-period uity of $17.000 beginning one year from today FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD $1 and PVAD 3(Use appropriate fotor(s) from the tables provided.) 1. Assuming an interest rate of 7%, determine the present value for the above cotions. Which option should Alex choose? 2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2027. Weimer will make annual deposits of $160,000 into a special bank account of the end of each of 10 years beginning December 31, 2018. Assuming that the bank account pays 8 interest compounded annually what will be the fund balance after the last payment is made on December 31 2027 Complete this question by entering your answers in the tabs below. Required: Required 2 Assuming an interest rate of 7% debermine the present value for the above options, which option should Alex choose? Round your finalwers to eart whole dollar amount.) PV Annuity PV Option th Regedt Required ) Chapter 5 HWA Answer euch of the following independent Questions Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1582.000 cash immediately. 2 $30,000 cash immediately and a six-period annuity of $9.000 beginning one year from today, or a six-period annuity of $17,000 beginning one year from today FV of $1. PV of S1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $ (Use appropriate factor(s) from the tables provided) 1. Assuming an inerest rate of determine the present value for the above options. Which option should Alex choose? 2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2027 Weimer will make annual deposits of $160.000 into a special bank account at the end of each of 10 years beginning December 31 2018 Assuming the the bank account pays 8% Interest compounded annually what will be the fund balance after the last payment is made on December 31 20272 Complete this question by entering your answers in the tabs below. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2027. Weimer will make annual deposits of $160,000 into a special bank account at the end of each of 10 years beginning December 31, 2018 Assuming that the bank account pays interest compounded annually what will be the fund balance after the last payment is made on December 31, 20277 (Round your final aners to nearest whole dollar amount.) Show less Table or calculator function
