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Exercise 5-15 (Algo) Future and present value [LO5-3, 5-7, 5-8] Answer each of the following independent questions. 1. You recently won a lottery and have

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Exercise 5-15 (Algo) Future and present value [LO5-3, 5-7, 5-8] Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $72,000 cash immediately, (2) $25,000 cash immediately and a six-year annual annuity of $8,200 beginning one year from today, or (3) a six-year annual annuity of $14,100 beginning one year from today. Assuming an interest rate of 5% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $135,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 6% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of \$1, PV of \$1, EVA of \$1. PVA of \$1, EVAD of \$1 and PVAD of \$1) Complete this question by entering your answers in the tabs below. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $72,000 cash immediately, (2) $25,000 cash immediately and a six-year annual annuity of $8,200 beginning one year from today, or (3) a six-year annual annuity of $14,100 beginning one year from today. Assuming an interest rate of 5% compounded annually, determine the present value for the above options, Which option should you choose? Note: Round your final answers to nearest whole dollar amount. Complete this question by entering your answers in the tabs below. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $135,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 6% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Round your final answers to nearest whole dollar amount. Complete this question by entering your answers in the tabs below. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $72,000 cash immediately, (2) $25,000 cash immediately and a six-year annual annuity of $8,200 beginning one year from today, or (3) a six-year annual annuity of $14,100 beginning one year from today. Assuming an interest rate of 5% compounded annually, determine the present value for the above options. Which option should you choose? Note: Round your final answers to nearest whole dollar amount

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