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This course is called Principles of Finance! Please answer the questions in their entirety, if you can not please do not accept this question! Please
This course is called Principles of Finance! Please answer the questions in their entirety, if you can not please do not accept this question! Please answer all of the questions I post. Thank you for helping me; will give you a thumbs up!
Jusef has won the $3,800,000 state lottery and intends to save all of the money for his retirement. He chooses to receive an annual cash flow of $190,000 for twenty years, with the first payment to be received one year from today. How much money will be in his retirement account in twenty years if he can reinvest his money at an annual rate of 8.75%? OA) $9,451,909 B) $3,800,000 C) $10,007,801 OD) $9,374,989 You dream of endowing a chair in finance at the local university that will provide a salary of $250,000 per year forever, with the first cash flow to be one year from today. If the university promises to invest the money at a rate of 4% per year, how much money must you give the university today to make your dream a reality? A) $3,000,000 B) $6,250,000 OC) $8,857,143 D) This question cannot be answered. An investment promises a payoff of $995 two and one-half years from today. At a discount rate of 4.5% per year, what is the present value of this investment? OA) $914.67 B) $891.32 C) $808.44 D) There is not enough information to answer this Step by Step Solution
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