Page 1 of 1 MANAGERIAL ACCOUNTING HANDOUT PROBLEM 12 Score Nums Section Problem (10 poluts). Use time value of money concepts to answer the following questions, Round all answers to the nearest whole dollar TIME VALUE OF MONEY PROBLEMS FOR KALINE 11) Kaline has accumulated $750,000 in a retirement account to be available at age 65. If the money can cam an average of 7% per year, c), over the Kaline's honthly, remaining life expectancy of 14 years, how much can aw from the count al the beginning of each month for those fourteen years and have no balance left at the end of that time! (2) Kaline is saving money to purchase a house and needs money for a down payment to purchase the house desired. If Kaline can invest S300 per month at the end of each month. at an annual rate of retum of 6.54.compounded monthly, bow much will be available at the cad of five years for the down payment? (3) Kaline wants to purchase a car that will have a monthly payment of $31X1. If car loans are available at an annual tale of 6%, compounded inonthly, and payments must be made at the beginning of each with, what is the maximum amunt that Kaline can bow la purchase the car if the lixan must be repaid in 66 months! (4) Kaline has won the lottery. The prize is $10,000,000. Kalite has two options take the prize in cqual annual payments of $400,000 over 25 years at the end of each year, or receive 55,250,000 today. I Kalinc can investmoncy at 8% perycar.compounded annually, wluch option should Kalinc choose? Explain