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e . Assume that the average price of a new home is $ 1 1 4 , 5 0 0 . If the cost of

e. Assume that the average price of a new home is $114,500. If the cost of a new home is increasing at a rate of 7% per year, how much will a new home cost in eight years?
Note: Round your answer to 2 decimal places.
f. An investment will pay you $7,000 in 9 years, and it also will pay you $240 at the end of each of the next 9 years (years 1 through 9). If the annual interest rate is 5%, how much would you be willing to pay today for this type of investment?
Note: Round your intermediate calculations and final answer to the nearest whole dollar.
g. A college student is reported in the newspaper as having won $7,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $7.5 million now. Instead she will receive $375,000 at the end of the year for each of the next 20 years. If the annual interest rate is 7%, what is the present value (todays amount) that she won? (ignore taxes).
Note: Round your answer to nearest whole dollar.

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