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Do your best, and don't forget to pray first. 1. If d(12)=10%, calculate ((12) 2. You won another Eurojackpot lottery. This time, you won
Do your best, and don't forget to pray first. 1. If d(12)=10%, calculate ((12) 2. You won another Eurojackpot lottery. This time, you won a perpetuity. This perpetuity makes payment at the end of every year forever. If interest rate is 4% and the value of the perpetuity today is $6,000, what is the payment you get every year? 3. You have signed a three-year contract to work for a bank. You expect a monthly salary of $5,000 and a bonus of $10,000 at the end of each year. Your salary and bonus are paid at the end of each period. If nominal annual interest rate convertible monthly is 12%, what is the present value of your contract?
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