Question: NOTE; Please use Excel for Excel formula 4. You have just received notification that you have won $5 million lottery. However, your price will be

NOTE; Please use Excel for Excel formula

4. You have just received notification that you have won $5 million lottery. However, your price will be awarded on your 60th birthday, 40 years from now. What is the present value of this future windfall assuming a discount rate of 4%?

5. Suppose you would like to buy your dream house in 10 years. You estimate that you will need $50,000 for the down payment. If you believe your mutual fund can achieve 7% annual rate of return and you want to have the down payment for the house in 10 years, how much do you have to invest today?

6. You have just made a one-time $5,000 contribution to your retirement account. Assuming you earn 15% per year and make no additional contributions. What will your account be worth when you retire in 40 years?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Case 1: Conch Republic Electronics Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company....

Please use excel and include formula instructions. Thanks! Statement of Cash Flows Excel Problem (50 points): Use the following comparative Balance Sheets, Income Statement, and additional...

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years...

Capital Budgeting Analysis. After three years successful operation in Mexico, your company is considering to expand your ESL business to other non-U.S. countries where there is an increase demand in...

What is the formula to solve this problem? XL 5 Calculating Present Values - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In X Arial 12 AA = % Paste BIU- - - A Cells Editing...

What formula is used to calculate the present value? XL 5 Calculating Present Values - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In X Arial 12 AA = % Paste BIU- - - A Cells...

please help me answer these questions especially #9 thank you Abstract This case study of capital investment analysis can be applied to the fundamentals of finance course. Ideally this case will also...

Hi Katrina, Please answer the below questions. I need them by 11pm EST. Thank you so much for your help. These are the last questions I need help with. 1. First City Bank pays 7 percent simple...

please use excel with tje formulas to how to do it on excel Screens Tops Screenshot Tops, Inc. The Business Situation After graduating with a degree in business from Rural College in Campus Town,...

1. According to the Census Bureau, in October 2016, the average house price in the United States was $28,158. 6 years earlier, the average price was $22,408. What was the annual increase in the price...

How do you organize informative and positive messages?

Which of the following is a source of funding for capital projects funds? A) Gifts from individuals and corporations. B) Proceeds from issuance of Long-term debt. C) Grants. D) All of the above.

coupon payments, will make a coupon plyment of how much every 6 months? 5 5 5 4 6 Multiple Cnoice $ 9 2 $ 1 4 0 $ 4 6 $ 7 0

Which statement is true about the definition of done ( DoD ) ? The teams share one common DoD At the higher levels there is only one DoD for everything that passes through the ART to a Solution...

=+1. What is the brand's character or personality?

=+3. Who is the audience?

=+4. What do they (audience members) currently think?