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Please help me answer these EQUIVALENT PAYMENTS PROBLEMS Question 1 of 5 Jacob won a lottery that would pay him $40,000 in 2 years and

Please help me answer these EQUIVALENT PAYMENTS PROBLEMS

Question 1 of 5

Jacob won a lottery that would pay him $40,000 in 2 years and $8,300 in 6 years. The lottery company had another option where he could get an upfront amount now and another $9,800 in 2 years.

Calculate the upfront amount that he would receive now from the second option, assuming that money is worth 4.00% compounded semi-annually.

$_______

Round to the nearest cent

Question 2 of 5

Brian was supposed to make a payment of $3,750 in 1 year and another payment for $1,500 in 6 years to Maroon Inc. as part of a payment plan. Instead, he is trying to reach an agreement with the company where he would settle both payments in 5 years. Assume that money is worth 3.83% compounded semi-annually.

a. Calculate the equivalent value of the $3,750 payment and the $1,500 payment today.

$_____

Round to the nearest cent

b. Calculate the size of the payment required in 5 years to settle the amount.

$______

Round to the nearest cent

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