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your answer to 2 decimal places.) e. Assume that the average price of a new home is $132,500. If the cost of a new home
your answer to 2 decimal places.) e. Assume that the average price of a new home is $132,500. If the cost of a new home is increasing at a rate of 7% per year, how much will a new home cost in eight years? (Round your answer to 2 decimal places.) f. An investment will pay you $13,000 in 9 years, and it will also pay you $360 at the end of each of the next 9 years (years 1 thru 9). If the annual interest rate is 5%, how much would you be willing to pay today for this type of investment? (Round your intermediate calculations and final answer to the nearest whole dollar.) g. A college student is reported in the newspaper as having won $13,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $13.5 million now. Instead she will receive $675,000 at the end of the year for each of the next 20 years. If the annual interest rate is 7%, what is the present value (today's amount') that she won? (ignore taxes). (Round your answer to nearest whole dollar) a. Present value b. Present value C-1. Future value c-2. Would you rather have $774 now or $1,800 ten years from now? d. Future value Future value Present value Present value
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