Tom invest $$1,000$ into an investment fund. The fund's expected rate of return is $11\%.$ The amount of money will he have in $10$ years $i$

$m$

Nper $(orN)=n^{**}m$

Rate $(or\frac{\text{I}}{Y})=\frac{i}{m}$

$PV$

$PMT$

$FV$

Answer

$2.$ You have an annuity that pays $$15$ per year for $61$ years. What is the future value $($FV$)$ of this annuity at the end of that $61$ years given that the discount rate is $10\%?$

$m$

Nper $(orN)=n^{**}m$

Rate $(or\frac{\text{I}}{Y})=\frac{i}{m}$

$PV$

$PMT$

$FV$

Answer buy the gift if he deposits his money in an account paying $9$ percent compounded semi$-$annually?

$m$

Nper $(orN)=n^{**}m$

Rate $(or\frac{\text{I}}{Y})=\frac{i}{m}$

$PV$

$PMT$

$FV$

Answer

$4.$ Imagine you have just won the Ohio Vax$-$Million lottery! However, you are infomed that you have two options to get the award maney. option A pays $$1,000,000$ immediately. Option B pays $$1,750,000$ at the end of five years from now. Using a discount rate of $5$ percent, based on present values, find the present value of the Option B$.$ Which would you choose?