Thomas won a lottery that will pay $550000 at the end of each of the next twenty years. Sandhill Finance has offered to purchase the payment stream for $6853000. What interest rate (to the nearest percent) was used to determine the amount of the payment? 5% O 7% O 6% 8%
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- Steven won a lottery that will pay $630000 at the end of each of the next twenty years. Sheridan Finance has offered to purchase the payment stream for $7849800. What interest rate (to the nearest percent) was used to determine the amount of the payment? O 7% O 5% O 6% O 8%Michael won a lottery that will pay him $ 480000 at the end of each of the next twenty years. Blue Spruce has offered to purchase the payment stream for $ 5505600. What interest rate (to the nearest percent) was used to determine the amount of the payment? 9%. 8%. 7%. 6%Kevin deposits $856.89 each quarter into an annuity account for his child's college fund in order to accumulate a future value of $75,000 in 16 years. How much of the $75,000 wilI Kevin ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary. Formulas 中 Answer(How to Enter) Keypad Present Value Formula Keyboard Shortcuts A PV = (1+) nt Annuity Formula for Finding Future Value nt FV = PMT . Annuity Formula for Finding Payment Amounts PMT = = FV . nt Prev Next
- You Answered Correct Answers You won the lottery. You could receive $100,000 a year for the next 10 years or a lump sum today. The lottery uses a 12 percent discount rate (compounded annually). What would be the lump sum amount you would receive today? 632,824.98 565,022.3 (with margin: 100)Your grandmother is gifting you GH¢ 100 a month for four years while you attend University to earn your Bachelor's degree. At a 5.5 percent discount rate, what are these payments worth to you on the day you enter college? #randomized O A. GH¢ 4,201.16 O B. GH¢ 4,299.88 O C. GH¢ 4,509.19 O D. GH¢ 4,608.87How much money must an electrical contractor deposit every year in her savings account starting 1 year from now at 7.5% peyear in order to accumulate $9000 five years from now?Select one:O a. 49620Ob. 1290O c.726d.1549Oe.52290Clear my choice Please answer fast please arjent
- Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $60,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual rate of interest jpeg EA9F9D41-D35...jpeg 8A1B4474-4751..jpeg 8A1B4474-4751..jpegAnswer Part A, B, B(i), B(ii), C of this textbook question that deals with the application of Time Value of Money(a) You have won a lottery worth $1,000,000. The amount will be paid to you in equal installmentsover 20 years. If the interest rate is 10% compounded annually, how much will you be paid atthe end of each year?b) You are planning to buy a car worth $20,000. Which of the two deals described below wouldyou choose, both with a 48-month term? (NB: estimate the monthly payment of each offer).i) the dealer offers to take 10% off the price, then lend you the balance at an annualpercentage rate (APR) of 9%, monthly compounding.ii) the dealer offers to lend you $20,000 (i.e. no discount) at an APR of 3%, monthlycompounding.(C) You have just joined the investment banking firm of Todd & Co. They have offered you twodifferent salary arrangements. You can have $75,000 per year for the next two years, or youcan have $55,000 per year for the next two years, along with a $30,000 signing…You recently won a contest sponsored by a local radio station. The radio station will pay you $3000 at the end of each of the next 11 years. Assuming an interest rate of 3%, what is the present value of this prize?Present Value of $1 Periods 2% 3% 4% 5% 6% 10 0.820 0.744 0.676 0.614 0.558 11 0.804 0.722 0.650 0.585 0.527 12 0.788 0.701 0.625 0.557 0.497 13 0.773 0.681 0.601 0.530 0.469 14 0.758 0.661 0.577 0.505 0.442 15 0.743 0.642 0.555 0.481 0.417 Present Value of Annuity of $1 Periods 2% 3% 4% 5% 6% 10 8.983 8.530 8.111 7.722 7.360 11 9.787 9.253 8.760 8.306 7.887 12 10.575 9.954 9.385 8.863 8.384 13 11.348 10.635 9.986 9.394 8.853 14 12.106 11.296 10.563 9.899 9.295 15 12.849 11.938 11.118 10.380 9.712 $27,759 $47,811 $38,424 $25,590
- Assume the total cost of university education will be $118064 when your child enters university after 15 years. You presently have $56853 to invest. What annual interest rate must you earn on your investment to cover the cost of your child's university education? Enter two decimal places numbers (such as 1234.56) without sign and symbol. Answer: 10.91KA. An individual recently won a lottery and has the opportunity to receive $100,000 per year at the end of the year for the next 25 years. Assuming an annual interest rate of 5% is appropriate, the present value of 1 is 0.29530 × $100,000 = $29,530, the present value of an ordinary annuity is 14.09394 × $100,000 = $1,409,394, and the present value of an annuity due is 14.79864 × $100,000 = $1,479,864. What is the fair value of the lottery payments according to the Financial Accounting Standards Board (FASB)?Tom just won a lottery. he plans to create a money market certificate in a bank to prepare a down payment for a house $400,000. The down payment is 20% of the house price, and the current five-year APY is 3.25%. How much should you put in the money market certificate account to accumulate the down payment? Group of answer choices $340,886.41 $93,872.91 $469,334.56 $68,117.28