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Task 1: Time value of Money (Use task1 in your excel sheet to answer the question) Suppose you just won the lottery. Based on the

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Task 1: Time value of Money (Use task1 in your excel sheet to answer the question) Suppose you just won the lottery. Based on the following assumptions, answer the following questions: Questions: 1. What is the present and future value of your winnings? (5 points) Answer: PV= Answer: FV= 2. Suppose you are saving the money you receive from the lottery authority and you are targeting to accumulate in total $140,000 after five years. You do not have any other income to save. What interest rate is required for you to reach your goal? What is the required effective annual rate? (5 points) Answer: ___Required rate =

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