ou have just won a lottery prize of ​$2,500,000 collectible in 10 yearly installments of ​$250,000 starting today. The total present worth of the prize is ​$1,663,173. Suppose that you have a large mortgage you want to pay off now. You propose an alternative but equivalent payment scheme. You would like ​$290,000 today and the balance of the prize in eight years when you intend to purchase a large piece of waterfront property. How much will the payment be in eight ​years? Assume that annual interest is 10 ​percent compounded monthly

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A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: How much money will be in a bank account at the end of 15 years if $100 is deposited today and the…

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Q: "You are interested in buying a piece of real property that could be worth $313,000 in 15 years.…

A: Here, we calculate the given as follow;

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Q: The price of a Universal Testing Machine doubles in  15 years. What is the compounded yearly…

A: The future value formula is given as:  F = P(1+R)n Where P : present valueF : future valueR : Rate…

Q: In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for…

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Q: 1. You needed $10,000 and obtained the following loan: Loan specifics: You are expected to pay 24…

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Q: You plan to buy an 11-year, $11,000 bond with an annual bond rate of 4% and keep it to maturity. How…

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Q: An annuity offers to pay £8,200 per year for 20 years, and the nominal annual bank interest rate is…

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Q: You have a total of $2,520,000 in your retirement account right now. You plan on making a uniform…

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Q: The price of a Universal Testing Machine doubles in 15 years. What is the compounded yearly interest…

A: Given that,    Principal (P): $1000(let assumed) Total P+I (A): $2,000(let assumed) Time (t in…

Q: Tamara Massey received $1,500,000 from an insurance company after her husband's death. She wants to…

A: Interest rate per month can be calculated as follows: Thus, the interest rate is 0.67%

Q: Suppose that you make a series of annual deposits into a bank account that pays 8% interest. The…

A: here we calculate how much would  have immediately after the fifth deposit  by following method…

Q: A child's grandparents have opened a 574895 savings account for the child on the day of her birth.…

A: It is given that, Principal amount(P)=5,74,895. Interest rate(i)=1.1% or 0.011 Time(t)=19 years…

Q: How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 42 years…

A:

Q: You have just won a lottery prize of $3.000,000 collectable in 10 yearly installments of $300,000…

A: * SOLUTION :-

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A: introduction The sum that the lender demands from the borrower in addition to the principal amount…

Q: Many years ago, Julie deposited $14,490 into a savings account. Today, the balance of the account is…

A: By using the formula;A=P1+r100n Where, A= Future value P= Present value r= Rate of interest n= Time…

Q: You are buying a home for $500,000. If you make a down payment of $80,000and take out a mortgage on…

A: Mortgage amount and number of years can be calculated as follows:

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A: Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other…

Q: Suppose Crystal Wilson wants to accumulate $1,000,000 by the time she retires in 40 years. If she…

A: Given, FV = $1,000,000  Time = 40 years  Rate of interest = 10%

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A: * Annual interest rate = per month interest rate * 12 * Effective annual interest rate : Here we…

Q: You are getting a loan to buy your first home. It is a $250,000 home with three bedrooms and two…

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Q: 2. What is the future worth of #10,000 invested every month for five years at 8% interest rate…

A:

Q: Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded…

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Q: Starting at age 35, you deposit $2000 a year into an IRA account for retirement. Treat the yearly…

A: Disclaimer- “Since you have asked multiple question, we will solve the three question for you as per…

Q: Today you borrow $10,000 to pay for your expected college costs over the next four years, including…

A: A cash flow is a physical or digital currency motion. It is a transaction, particularly through one…

Q: 3. What is the future value in year 10 of the series described in Problem 2?

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Part of the income that a machine generates is put into a sinking fund to replace the machine when…

A: Annually Deposit = 2800 r = 4% Amount = 49000

Q: Jim's retirement account in a company currently totals $416,384. What perpetual income can Tom and…

A: To begin receiving income as soon as a policy has been established, the annuity contract is called…

Q: A new home that costs $490,000 has presented itself. You want to make a 20% down payment and finance…

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Q: Bobby has heard the importance of saving early for retirement. He wants to retire in 35 years. But…

A: Given,  Monthly Savings : $600 (PMT)Time to retire : 35 yearsTime to start savings : Now i.e 0Time…

Q: 5. You receive payments of $10,000 per year from a family trust, but you don't need that money right…

A:

Q: Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he…

A: Given,  Tom earns $126,000 and estimates that he will need 80% of his salary for retirement in 10…

Q: An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I…

A: Effective annual rate (EAR) implies a real interest rate which an investor is expect from his…

Q: Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to…

A: Deposit = 10,000 deposit after 2 years = 5,000 withdraw after 5 years = 8,000 interest rate = 10%