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i need the answer quickly Give Answers Only Question 1: You win a lottery with a prize of $1.8 million. Unfortunately the prize is paid
i need the answer quickly
Give Answers Only Question 1: You win a lottery with a prize of $1.8 million. Unfortunately the prize is paid in 12 annual installments. The first payment is next year. How much is the prize really worth? The discount rate is 12 percent. Question 2: You want to buy an ordinary annuity that will pay you $5,000 a year for the next 25 years. You expect annual interest rates will be 9 percent over that time period. The maximum price you would be willing to pay for the annuity is closest to Question 3: Harold Filbert is 25 years of age and his salary next year will be $25,000. Harold forecasts that his salary will increase at steady rate of 7 percent per annum until his retirement at age 60. N If the interest rate is 12 percent, what is the PV of his last salary payment? Question 4: Siegefried Basset is 65 years of age and has a life expectancy of 15 more years. He wishes to invest 30,000 in an annuity that will make a level payment at the end of each year until his death. If the interest rate is 12 percent, what income can Mr. Basset to receive each year? Question 5: It is now January 1, 2020. Your plan to make 5 deposits of $500 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 15 percent but uses semiannual compounding, how much will be in your account after 15 yearsStep by Step Solution
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