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Max win a lottery and has the following options to claim the prize. He estimates that he can get an annual return of 7% compounded
Max win a lottery and has the following options to claim the prize. He estimates that he can get an annual return of 7% compounded annually. Which of the following is the best option to claim the prize (ignore personal income tax)? to receive $400,000 at the end of the 15th year to receive $20,000 at the end of each year for 15 years to receive $75,000 at the end of 5th year and $200,000 at the end of 15th year to receive $75,000 at the end of 5th year and $150,000 at the end of 10th year Receive $150,000 today Question 10 (0.5 points) 24-year old Kathy has decided to contribute $2000 once every year into her retirement account that is expected to produce 6% a year from age 24 through age 40. She will then stop making annual contribution to the account, but keep funds in the accounts invested at 6% expected return. By age 70 , how much will she have in her retirement account? $51,345.06$453,016.25$324,080.85$239,765.44$158,116.37
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