Help me answer the following questions.,,,

1. A certain investment will pay you $10,000 in 10 years. It will ALSO pay you

300 at the end of cach of the next 10 years (i.e. years 1 thru 10). If interest rates

are 6%, how much would you be willing to pay today for this type of investment?

2.A man is listed in the newspaper as having won S10,000,000 in the Kansas State

Lottery. However, as is always the custom with lotteries, he does not actually

receive the entire $10 million now. Instead he will receive $500,000 at the end of

the year for each of the next 20 years. If the interest rate is 6%, what is the

present value that he won?

3.1f you receive a loan today of S12,500 for an automobile, how much will you

have to pay at the end of cach month if the term of the loan is 40 months and the

annual interest rate is 12%? (first loan payment is due at the end of the first

month). Interest is compounded monthly. What if the tem of the loan is only 20

months?

1. Jazmin earned $51,250 this year. Calculate her total FICA contribution for the year. How much did her employer pay toward FICA? 2. Grady Zebrowski, age 25, just graduated from college, accepted his first job with a $50,000 salary, and is already looking forward to retirement in 40 years. He as- sumes a 3.5 percent inflation rate and plans to live in retirement for 20 years. He does not want to plan on any Social Security benefits. Assume Grady can earn an8 percent rate of return on his investments prior to retirement and a 5 percent rate of return on his investments post-retirement to answer the following questions using your financial calculator. a. Grady wants to replace 90 percent of his current income. What is his annual need in today's dollars? b. Using Table 15.2, Grady thinks he might have an average tax rate of 13 percent at retirement if he is married. Adjusting for taxes, how much does Grady re- ally need per year, in today's dollars? c. Adjusting for inflation, how much does Grady need per year in future dollars when he begins retirement in 40 years? d. If he needs this amount for 20 years, how much does he need in total for retire- ment? (Hint: Use the inflation-adjusted rate of return.) e. How much does Grady need to save per month to reach his retirement goal, assuming he does not receive any employer match on his retirement savings?