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please make sure to provide all the steps in details. thank you Answer each of the following independent questions. 1. You recently won a lottery
please make sure to provide all the steps in details. thank you
Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $84,000 cash immediately, (2) $31,000 cash immediately and a six-year annual annuity of $9,100 beginning one year from today. or (3) a six-year annual annuity of $16,400 beginning one year from today. Assuming an interest rate of 5% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $165,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 6% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of \$1. PV of \$1. FVA of \$1. PVA of \$1. FVAD of \$1 and PVAD of \$1) Complete this question by entering your answers in the tabs below. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $84,000 cash immediately, (2) $31,000 cash immediately and a six-year annual annuity of $9,100 beginning one year from today, or (3) a six-year annual annuity of $16,400 beginning one year from today. Assuming an interest rate of 5% compounded annually, determine the present value for the above options. Which option should you choose? Note: Round your final answers to nearest whole dollar amount. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $84,000 cash immediately, (2) $31,000 cash immediately and a six-year annual annuity of $9.100 beginning one year from today, or (3) a six-year annual annuity of $16,400 beginning one year from today. Assuming an interest rate of 5% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $165,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 6% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use table5, Excel, or a financial calculator. (FV ol \$5. PVof S1, EVA of S1, PVA of \$1. FVAD of S1 and PVAD of S1) Complete this question by entering your answers in the tabs below. A company wants to accumulate a sum of money to repay certein debts due in the future. The company will make annual deposits of $165,000 into a special bank account at the end of each of 10 years, Assuming the bank account pays 6% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Round your final answers to nearest whole dollar amount Step by Step Solution
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