1.    On Bobby’s graduation from college, his uncle promised him a gift of $12,700 in cash or in payments of $830 every quarter for the next 5 years after graduation. Assume money could be invested at 8% compounded quarterly.       Calculate the present value of options.      Present value   Option 1 (the cash)    $      Option 2 (the present value of the stream of payments)    $

Question 2: Jordan has $6000 to invest in an account from which he plans to make regular withdrawals over the next 3 years. He is considering two options. • Option A: Withdrawals are made every quarter and interest is earned at a rate of 8% compounded quarterly. • Option B: Withdrawals are made every month and interest is earned at a rate of 7.75% compounded monthly. a) Determine the regular withdrawals for each option. b) Determine the total interest earned for each option. c) Discuss which is better and why. Paragraph BI U✓ A 川く ✓ | X -123 Lato (Recom... ✔ 19px... ✓ T > D GO C + v

You have just won the state lottery and have two choices for collecting your winnings. You can collect $108,000 today or receive $21,300 at the end of each year for the next seven years. A financial analyst has told you that you can earn 9% on your investments. Required: 1. Calculate the present value of both the options (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answers to nearest whole dollar.) Present Value Option 1 Option 2 108,000 2. Which alternative should you select? O Option 1 O Option 2 %24

Your uncle wants to retire in 30 years, and he wants to have an annuity of $1000 a year for 20 years after retirement. He wants to receive the first annuity payment at the end of the 30th year. Using an interest rate of 10%, how much must he invest as a lump sum today in order to have his retirement annuity (round to nearest $10). Multiple Choice O $500 $490 $540 $570 none of the above x

You have just won the state lottery and have two choices for collecting your winnings. You can collect $111,000 today or receive $21,900 at the end of each year for the next seven years. A financial analyst has told you that you can earn 9 percent on your investments. Required: 1. Calculate the present value of both the options (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. 2. Which alternative should you select?

Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The account earns an annual interest rate of 1.4%. After the final deposit, they move the accumulated savings to a brokerage account and invest in the stock market, where they earn an average annual return of 6.9% for the following 16 years. How much will they have in the account at the end? O a. $131,280 O b. $404,155 O c. $137,311 O d. $296,336 e. $302,138 f. $279,603 g. $496,270 h. $249,511

Your rich uncle dies, leaving you a life insurance policy worth $120,000. The insurance company also offers you an option to receive $8,225 per year for 25 years, with the first payment due today. You should choose the immediate payout if the interest rate is greater than a. 5.27% b. 5.76% C. 7.75% d. 4.66%