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please i need this fast After hearing a knock at your front door, you are surprised to see the Prize Patrol from your state's online
please i need this fast
After hearing a knock at your front door, you are surprised to see the Prize Patrol from your state's online lottery agency. Upon opening your door, you learn you have won the lottery of $23.8 million. You discover that you have three options: (1) you can receive $2.38 million per year for the next 12 years, (2) you can have $21.5 million today, or (3) you can have $5.8 million today and receive $1.90 million for each of the next 10 years. Your lawyer tells you that it is reasonable to expect to earn an annual return of 10% on investments. Required: 1. What is the present value of the above options? (FV of \$1. PV of \$1, EVA of \$1, and PVA of \$1) (Use the appropriate factor(\$) from the tables provided. Enter your answers in whole dollar not in millions (i.e., 1,000,000 not 1.0).) 2. Which option do you prefer? Option 1 Option 2 Option 3 a. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace decides to deposit $146,000 in a savings account on January 1 of this year. The savings account will earn 7% annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). b. At the end of each year, a different friend, Claire, plans to deposit $10,700 in a savings account. The account will earn 10% annual interest, which will be added to the fund balance at year-end. Claire will make her first deposit at the end of this year: Required 1. In (a), how much will be available at the end of five years? What is the total interest earned over the five years? (FV of \$1. PV of \$1, FVA of \$1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided. Round your answers to nearest whole dollar.) 2. In (b), what will be the balance in the savings account at the end of the 9 th year (i.e.4 after 9 deposits)? What is the interest earned on the 9 deposits? (EV of \$1, PV of \$1. EVA of \$1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided. Round your answers to nearest whole dollar.) Step by Step Solution
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