Question: we leave a like if done correctly :) 1. You recently won a lottery and have the option of receiving one of the following three

we leave a like if done correctly :)
 we leave a like if done correctly :) 1. You recently
won a lottery and have the option of receiving one of the

1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $84,000 cash immediately. (2) $31,000 cash immediately and a six-year annual annuity of $9.100 beginning one year from today, or (3) a six-year annual annuity of $16,400 beginning one year from today. Assuming an interest rate of 5% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $165,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 6% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Complete this question by entering your answers in the tabs below. A compary wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of 5165,000 inte a speclal bank acceunt at the end of each of 10 years. Assuming the bank account pays 6% intecest compounded annually, what will be the fund balance atter the last payment is made in ten years? Note: Round your final answars to rearest whole doliar amount. 1. You recently won a lottery and have the option of recelving one of the following three prizes: (1) $84,000 cash immediately. (2) $31,000 cash immediately and a sk-year annual annulty of $9,100 beginning one year from today, or (3) a slx-year annual annulty of $16,400 beginning one year from today. Assuming an interest rate of 5% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company wil make annual deposits of $165,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 6% interest. compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financiol calculator. (FV of S1. PV of S1. EVA of S1. PVA of S1. EVAD of S1 and PVAD of S1) Complete this question by entering your answers in the tabs below. You recently won a lottery and have the option of receiving one of the following three prizes: (1) 584,000 cash immediately. (2) $31,000 cash immedlately and a slix-year anual annulty of $9,100 beginning one year from today, or (3) a six-year annual annuity of $16,400 beginning one year from today. Astuming an interest rate of 5% compounded annually, determine the present value for the above options. Which option should you choose? Note: Round your final answers to nearest whole dollar amount

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!