Question 6 10 pts You just won the lottery. Your payout will start exactly 2 years from now with payment of $80,000 per year forever, which can be transferred to any other person indefinitely. What is the present value of these lottery winnings if the appropriate discount rate is 7%? $1,068,091 O $998,216 O $1,142,857 ○ $800,000 O Infinitely large

6

question 15

Moving to another question will save this response. Question 14 3.3 How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 25 years? Assume an interest rate of 15% and cash flows at the end of each period? OA. $202.52 O B. $573.91 OC. $652.21 O D. $303.57

1On the day you retire you have $500,000 saved. You expect to live another 30 years during which time you expect to earn 8% on your savings while inflation averages 3.5% annually. Assume you want to spend the same amount each year in real terms and die on the day you spend your last dime. What real amount will you be able to spend each year?
 a. $61,931.78 b. $79,211.09 c. $79,644.58 d. $30,695.77 2Now consider your financial objective is to save $500,000 for preparing your retirement, assuming 30 years from now. If you invest your RRSP savings in a mutual fund which can realize an average return of 10% per year. To achieve your goal, how much do you need to save at the end of each year over the 30-year period? a. 4,039.26 b. 3,039.62 c. 2,985.54 d. 10,988.32 3What is the FV of $100 deposited today into an account with an APR 12.6%, compounded semiannually for 10 years? a. 1478.96 b. 3460.06 c. 327.63 d. 339.36

What is the present value of $14,000 to be received in one year if the interest rate is 8% p.a.? a. $6000 b. $15120 c. $12963 d. $22000

E9

please send correct answer Q5

Hw 4

Plz complete  solution  I vill definitely  upvote