Brian won the state lottery grand prize of $5 million. The lottery offers him two options: five annual payments of $1 million, starting this year, or one lump sum payment of $4.5 million right away. (a) If the interest rate (discount rate) is i = 5%, what is the present value of the prize if Brian choose the five annual payments? Which option should he choose? (b) If the interest rate (discount rate) is i = 10%, what is the present value of the prize if Brian choose the five annual payments? Which option should he choose?

Answer all parts of the economics problem

Answer quick please. Do not need full work

Wow and beautiful expert Hand written solution is not allowed

You are in the market to buy a used car. Your monthly budget allows for a $300 per month car payment and you want to finance for 4 years. The current APR for a used car is 3%. a) Calculate the amount of loan you can afford. b) Complete the table below. Year 0 After 1 month After 2 months After 6 months After 1 year Loan Balance Interest Paid

Kevin invested part of his $5000 bonus in a certificate of deposit (CD) that paid 2% annual simple interest, and the remainder in a mutual fund that paid 4% annual simple interest.  If his total interest for that year was $140.00, how much did Kevin invest in the mutual fund? Group of answer choices Kevin invested $4986.00 in the mutal fund. Kevin invested $4846.00 in the mutal fund. Kevin invested $2000.00 in the mutal fund. Kevin invested $2140.00 in the mutal fund.

Calculate the simple interest due on a 58-day loan of $1300 if the interest rate is 5%. (Round your answer to the nearest cent.)$

When is it usually better to begin saving/investing for retirement? * Earlier in life (i.e. in your teens or 20s) Later in life (i.e. in your 50s or 60s) Cannot be determined

(3) Suppose we invested $20,000 at an annual rate of 5% where interest is compounded continuously. (a) Write down an IVP that describes the amount of money y(t) that you will have in your account after t years. Then, solve the IVP and compute how much money you expect to have in your account after 10 years. (b) Now suppose you want to have $100,000 in your account after those 10 years. In order to accomplish that, you will make yearly deposits of D dollars. Find D, so that y(10) = $100,000. Note that we still have y(0) = $20,000.

Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,200 is set aside each year and invested in a savings account that pays 20% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 24 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 24. The annuity will extend from the EOY 25 to the EOY 34. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest and annuity table for continuous compounding when /-20% per year. CODE a. The accumulated savings amount at the end of 24 years will be $ (Round to the nearest dollar.)