Question: Show excel formulas ix) You have won a prize which promises to pay you both $200,000 five years from now and $200,000 seven years from

Show excel formulas ix) You have won a prize which promises to

Show excel formulas

ix) You have won a prize which promises to pay you both $200,000 five years from now and $200,000 seven years from now. How much is the prize worth today if the interest rate is 9% ? x ) You have won a contest which gives you the choice between receiving a $20,000 prize in 4 years or $25,000 prize in 9 years. How much is each prize worth today if the interest rate is 3% ? xi) You have won a contest which gives you the choice between receiving a $20,000 prize in 4 years or $25,000 prize in 9 years. How much is each prize worth today if the interest rate is 10% ? xii) You have won a contest which gives you the choice between receiving a $20,000 prize in 4 years or $25,000 prize in 9 years. You will not need money until 12 years from now. Which prize should you choose if the interest rate is 3% ? Why? xiii) You have won a contest which gives you the choice between receiving a $20,000 prize in 4 years or $25,000 prize in 9 years. You will not need money until 12 years from now. Which prize should you choose if the interest rate is 10% (you can borrow and lend at 10% )? Why

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