Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On a whim you purchased a scratch-off lottery ticket at the gas station. It must have been your lucky day because you won $2,500,000. Being

image text in transcribed
On a whim you purchased a scratch-off lottery ticket at the gas station. It must have been your lucky day because you won $2,500,000. Being logical and rational you decide to invest the money at 3% for 14 years until you are ready to start a family At the end of 14 years, how much will your investment be worth? Future Value of $1 Periods 2% 3% 4% 5% 6% 10 1.219 1.344 1.480 1.629 1.791 11 1.243 1.384 1.539 1.710 1.898 12 1.268 1.426 1.601 1.796 2.012 13 1.294 1.469 1.665 1.886 2.133 14 1.319 1.513 1.732 1.980 2.261 15 1.346 1.558 1.801 2.079 2.397 Future Value of Annuity of $1 Periods 2% 3% 4% 5% 6% 10 10.950 11.464 12.006 12.578 13.181 11 12.169 12.808 13,486 14.207 14.972 12 13.412 14.192 15.026 15.917 16.870 13 14.680 15.618 16.627 17.713 18.882 14 15.974 17.086 18.292 19.599 21.015 15 17.293 18.599 20.024 21.579 23.276 $3,782,500 $3,895,000 $42,715,000 $1,652,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Assessment Manual For The Internal Audit Activity

Authors: The Internal Audit Foundation

2017 Edition

0894139975, 978-0894139970

More Books

Students also viewed these Accounting questions