m/courses/635112/quizzes/2004079/take Maps Question 1 2 pts You just won the lottery and will receive $11,000,000 paid to you in 20 equal annual payments with the first payment being received at the end of this year. If the discount rate is 8%, what is the present value of the prize? Question 2 2 pts What is the difference in present value between a perpetuity that pays $8.500 per year and an ordinary annuity that pays $8.500 per year for 26 years? Assume a discount rate of 13%. Question 3 2 pts An ordinary annuity has a present value of $14,000. What would be the present value if the first payment were not received until the end of year 11? Assume a cost of capital of 7%. Ch 14 Retail-1.docx Question 4 2 pts A star quarterback just signed with a team that offered a contract that pays $9,000,000 today, $2,000,000 at the end of year 1, $3,000,000 at the end of year 2, and $6,000,000 at the end of year 3. If the discount rate is 8%, what is the present value of this compensation package? > Question 5 2 pts How much would you need to save each year in order to accumulate $3,000,000 in 30 years? Assume the interest rate is 13% and that the payments occur at the end of each year. Question 6 2 pts You want to buy a house and have determined you can afford a 30 year mortgage with monthly payments of $1,560. If the APR on the loan is 5.9%, how much home can you afford to buy