You have won the lottery and while it said it was for $$1,000,000,$ the state has offered you the

following payment structure to get that money in your hands.

You happen to know the discount rate is $7\mathrm{.}5\%$ and so would you take a payout of $$700,000$ immediately

instead of waiting $8$ years? Explain your answer.$|$

You accept the money from the buyout in question one and immediately invest it in a $10$ vear

account that is collecting $3\mathrm{.}75\%$ interest. You have also decided to put $$200$ into this account

each paycheck and you get paid semi$-$monthly $(24$ per year$).$ How much would you have at the

end of the $10$ vear investment? How much would you have if you could contribute $$500$ per pay

check and get a $6\mathrm{.}0\%$ interest rate?

You still want to be a millionaire so you will sell all your worldly belongings which leaves you

with $$250,000.$ You want this to happen in $20$ years and feel you can get an investment that

pay you $5\mathrm{.}5\%$ interest compounded monthly. How much would you need to contribute each

month during this $20$ vears to get to $$1,000,000?$

Compare question $3($taking $20$ years$)$ to how long it would take you to start with $$300,000$ and

contribute $1000$ monthly at $6\mathrm{.}5\%$ interest. How many years would this take rounded to one

decimal place.

Looking at question $3$ that looks like way too much to contribute monthly so you have a new

plan, you will just try to get to $$250,000$ saved in $10$ years with an investment that will earn $3\mathrm{.}5\%$

compounded monthly. You know you can put in $$1000$ a month and what you need to know is

how much would you need today as an initial $($pv$)$ investment to make this happen?

So you want to buy a condo and you want to comparison shop. You have $3$ different options

where the rates and years go together and $3$ different condos. You will put down $15\%$ as a

down payment for each and borrow the rest from a bank. Please tell me the monthly payment,

the total cost, the first month interest and the last months interest for each option.

Condos costs: