you just won $1 million dollars in the lottery! They offer you two options for your winnings: a lump sum payment right now, or $100,000 a year over the next 10 years. Current 10-year interest rates are at 5%, and the current tax on lottery winnings is 40%.

What is the amount you will receive today with the lump sum option?

Which option would you select? How would you present your argument for your decision in a debate?

2.Jimmy borrows $80,000 at 5.4%/a compounded monthly for a period of 30 years to build a treehouse. He is guaranteed that interest rate for 10 years and makes monthly payments of $449.22. After 10 years, the interest rate drops by 0.6%/a and he continues with the regular payments for another 10 years, at which point the rate increases by 1.2%. If he continues to pay the same monthly payment, how much will the time to pay off the loan change?

3.Suppose you want to have $300,000 for retirement in 30 years. Your account earns 9% interest.

a) How much would you need to deposit in the account each month?

b) How much interest will you earn?

c) Suppose you waited 10 years to invest in the same retirement fund and have the same $300,000 for retirement at the same 9% interest. What amount will you have to deposit each month to match the value of your annuity?

4.You want to buy a $244,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan for the rest.

a) How much is the loan amount going to be?

b) what will your monthly payments be if the interest rate is 6%?

c) what will your monthly payments be if the interest rate is 7%?

5.Find the maximum revenue for the function R(x)=373x - 0.9x²

6.Theodore invests a total of 23,500 in two accounts paying 5% and 9% annual interest, respectively. How much was invested in eqxh account if, after 1 year, the total interest was 1,955

7.A bank loaned out $21,000, part of it at the rate of 4% annual interest, and the rest at 15% annual interest. The total earned for both loans was $2,215.00. How much was loaned at each rate?

8.Jolene invests her savings in two bank accounts, one paying 3 percent and the other paying 8 percent simple interest per year. She puts twice as much in the lower-yielding account because it is less risky. Her annual interest is $526 . How much did she invest at each rate?

9. You need to save money to go on vacation at Disney World.You figure it will take about $10,000 to take you and your family on this vacation.You want this money in 4 years.How much should you put in the bank every month if you are earning 2.5% interest compounded monthly?

10.DorothyTaylorhas won a state lottery and will receive a payment of $93,000every year, starting today, for the next 20 years. If she invests the proceeds at a rate of5.76percent, what is the present value of the cash flows that she will receive?