Congratulations you just won the Colorado Lotto!!! The cash flows below are related to the yearly annuitized jackpot. Assuming you take the Annuitized Jackpot (cash flows below), what would JG Wentworth pay if you called 877-CASH-NOW and offered to sell your annuity? Assume JG Wentworth wants a 10% annual rate of return on their investment. 200 300 400 1-10 11-15 16-20 You decide to reject the sale offer from JG Wentworth. How much would you have if you invested the jackpot winnings in the Russell 2000 index and generated a 12% annualized rate of return each and every year for 30 years? After calculating the Future Value of the Russell 2000 index, how much could you pull out over the next ten years (31-40) if you moved the money into a safer bond fund offering 4% per year?
Congratulations you just won the Colorado Lotto!!! The cash flows below are related to the yearly annuitized jackpot. Assuming you take the Annuitized Jackpot (cash flows below), what would JG Wentworth pay if you called 877-CASH-NOW and offered to sell your annuity? Assume JG Wentworth wants a 10% annual rate of return on their investment. 200 300 400 1-10 11-15 16-20 You decide to reject the sale offer from JG Wentworth. How much would you have if you invested the jackpot winnings in the Russell 2000 index and generated a 12% annualized rate of return each and every year for 30 years? After calculating the Future Value of the Russell 2000 index, how much could you pull out over the next ten years (31-40) if you moved the money into a safer bond fund offering 4% per year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Congratulations you just won the Colorado Lotto!!! The cash flows below are related to the
yearly annuitized jackpot. Assuming you take the Annuitized Jackpot (cash flows below), what
would JG Wentworth pay if you called 877-CASH-NOW and offered to sell your annuity?
Assume JG Wentworth wants a 10% annual rate of return on their investment.
200
300
400
1-10
11-15
16-20
You decide to reject the sale offer from JG Wentworth. How much would you have if you
invested the jackpot winnings in the Russell 2000 index and generated a 12% annualized rate of
return each and every year for 30 years?
After calculating the Future Value of the Russell 2000 index, how much could you pull out over
the next ten years (31-40) if you moved the money into a safer bond fund offering 4% per year?
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