Question
You May Use Excel For This Problem! Complete Both Parts for Thumbs Up! Thanks Total of Annual Payments $850,000 The Annual Payment $45,000 Total #
You May Use Excel For This Problem! Complete Both Parts for Thumbs Up! Thanks
| Total of Annual Payments | $850,000 |
| The Annual Payment | $45,000 |
| Total # Annual Payments | 20 |
| Interest Rate | 5.5% |
| First Annual Payment = Immediate |
You Win the Lottery Yay! You may take the choice of receiving annual payments with the first payment being immediate or take a "lump sum" that is paid immediately based on the present value.
a) Draw Cash Flow with values of the repetitive annual payments
b) Calculate "Lump Sum" Amount
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The Financial Services Marketing Handbook
Authors: Evelyn Ehrlich
2nd Edition
1118065719, 978-1118065716
