Question: (PLEASE SHOW ALL WORK AND VALUES) (PLEASE SHOW ALL WORK AND VALUES) 45) You currently have $67,000 in an interest-earning account. From this account, you

(PLEASE SHOW ALL WORK AND VALUES)

45) You currently have $67,000 in an interest-earning account. From this account, you wish to make twenty year-end payments of S5,000 each. What annual rate of return must you make on this account to meet your objective? a) 4.16% b) 5.03% c) 6.42% d) 7.32% 46) After winning the lottery, you state that you are indifferent between receiving twenty S500,000 end of the year payments (first payment one year from today) and receiving a lump sum payment of S5,734,961 today. What interest rate are you using in your decision making process such that you are indifferent between the two choices? a) 5% b) 6% c) 7% d) 8%

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