13. You won $100 000.00 in a lottery and you want to set some of that sum aside for 4 years. After 4 years you would like to receive $2000.00 at the end of every 3 months for 6 years. If interest is 5% compounded semi-annually, how much of your winnings must you set aside?
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- You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10 years, you would like to receive $2400 at the end of every 3 months for 8 years. How much of your winnings must you set aside if interest is 5.5% compounded quarterly?You won $100 000. 00 in a lottery and you want to set some of that sum aside for10 years. After 10 years, you would like to receive $2400.00 at the end of every3 months for 8 years. How much of your winnings must you set aside if interestis 5.5% compounded quarterly?Assume you won the state lottery and you are entitled to $5,000,000. If you choose not to take the money right away but wish to be paid weekly, you estimate that you will want to receive this cash flow over the next 10 years. How much will your weekly payment be at an interest rate of 5% ?
- You have received $200,000 from the PowerBall Lottery and want to have half that amount available for your retirement in 30 years. If you can earn 6% interest per year (compounded monthly) on this investment, how much of the lottery winnings must you invest?You can receive lottery winnings of either $800,000 now or $100,000 per year for the next 10 years. If your interest rate is 5% per year, which do you prefer?You just won the lottery and are offered the following payout: $1,000,000 immediately plus another 6 payments that increase by $500,000 per year. Thus in year one, you receive $1,500,000, etc. The EAR you expect to earn on reinvestment of your money is 8.5%. What is the minimum amount you should be willing to accept as a lump sum today rather than the payout over time?
- You just won a $625,000 lottery prize! You will receive $25,000 per year for the next 25 years, starting today, a total of $625,000. If the current interest rate is 1.9% compounded annually, what is the cash value of this prize?Congratulations! You have just won a small lottery. Lottery officials give you three alternatives for receiving your winnings: a)$8000 now b)$1000 per year for 12 years c)$15000 in 10 years If you can earn 6.5% on your money, which alternative should you choose?Assume that you just won the state lottery. Your prize can be taken either in the form of 100,000 at the end of each of the next 15 years or as a single amount of $1,000,000 paid immediately. If you expect to be able to earn 5% annually on your investments, ignoring taxes and other considerations, which alternative should you take? Why?
- You just won a special lottery which will entitle you to an annual payment $45000 for 10 years, but the first payment won't start until 5 years later (i.e. 1st payment at the end of the 5th year). If you plan to immediately deposit every payment into an annuity product that gives you 5.62% APR with annual compounding, how much is your account balance at the end of the lottery payment plan (i.e. when you receive the last payment)?A lottery corporation sells a ticket for a chance to win $500,000. If you win, the prize winnings will be spread out over time with your first payment of $150,000 today. The second payment of $ 150,000 would be released to you in a year, and the last payment of $200,000 would be released the following year. If you could earn 3.5% compounded annually, what is the value of the prize today?You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you leave the money invested for another 5 years how much will you have in the 15th year? (select the answer closest to your answer) Multiple Choice $322276 $455855 170000 $234880 $170000 $361391