Jane won 10M and has the option of taking all her winnings today, or taking 1.2M today and 1.2M for the next 10 years. At what interest rate would make either option equally attractive. Group of answer choices 6% 8% 10% 12%
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Jane won 10M and has the option of taking all her winnings today, or taking 1.2M today and 1.2M for the next 10 years. At what interest rate would make either option equally attractive.
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- Jane won 10M and has the option of taking all her winnings today, or taking 1.2M today and 1.2M for the next 10 years. At what interest rate would make either option equally attractive. Group of answer choices 6% 8% 10% 12% Need Fast PlzzDmitri just won the lottery and must choose between three award options: 1. A lump sum of $20,000,000 received today 2. 15 end-of-year payments of $2,500,000 3. 40 end-of-year payments of $1,800,000 For each option in the table, indicate which values to enter for each variable in your financial calculator. Option 1 Option 2 Option 3 Lump Sum Payment 15 Payments 40 Payments No. of Periods I/YR V = 15 ▼ I/YR V = 40 Annual payment %3D %3D Future Value FV= 0 FV = 0 Present Value $20,000,000 Assume the interest rate is 8.00%, entered as 8 on your financial calculator. Note: Take the absolute value of the present value when answering this question. Using the table you just filled out, along with a financial calculator, yields a present value for option 2 of approximately and a present value for option 3 of approximately (when the interest rate is 8.00%). Based on this, Dmitri should choose option if he seeks to maximize present value.(Use beginning mode.) Person A invests $100/month 9% interest for 30 years. Person B invests $200/month 9% interest for 15 years. How much does person A end up with? $ How much does person B end up with? $ Conclusion: which is more important in investing, time or money? webmail N NMU WIT NOTLJ Othe AJK TOUR TEACTI
- First Time Value of Money Homework i Help Save & Exit Submit 13 Mary is going to receive a 31-year annuity of $9,600 per year. Nancy is going to receive a perpetuity of $9,600 per year. If the appropriate interest rate is 9 percent, how much more is Nancy's cash flow worth? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. 10 Present value Book Prent Reterences: Present valueAssume that Aliza has a winning lottery ticket and she are the given the option of accepting the value of P1,000,000 paying interest three years from now or taking the present value of the P1,000,000 now. The sponsor of the prize is using a 6% interest and discount rate. a. If she choose to receive the present value of the prize now, how much will she receive? b. If she choose to receive the value 3 years from now, how much will she receive? c. Which of the options will give her higher amount?As a prize, you are offered of one of the following three options:Option 1: $6,000 today, orOption 2: $8,500 in five years, orOption 3: $10,000 in seven years.Assuming you can earn 7% on your money, which option should you choose. (Brieflyexplain your choice and show all working to justify your answer.)
- Suppose that Dmitri just won the lottery and must choose between three award options: 1. A lump sum of $40,000,000 received today 2. 15 end-of-year payments of $5,000,000 3. 40 end-of-year payments of $3,600,000 Assume the interest rate is 8.00%, entered as 8 on your financial calculator. Note: Take the absolute value of the present value when answering this question. Using a financial calculator yields a present value for option 2 of approximately and a present value for option 3 of approximately (when the interest rate is 8.00%). Based on this, Dmitri should choose option if he seeks to maximize present value. Now assume the interest rate is 9.00%, entered as 9 on your financial calculator. Note: Take the absolute value of the present value when answering this question. Using the table you just filled out and a financial calculator, yields a present value for option 2 of approximately and a present value for option 3 of approximately v (when the interest rate is 9.00%). Based on…You plan to invest $5,000 into an account. If you would like to have $10,000 in 15 years, what rate of return must you earn? Question 5 options: 6.02% 5.24% 4.73% 7.55% 7.11%Can you show me how this is done? Ava Darling plans to buy a house in 10 years and needs $17,446 for a down payment. If the annual interest rate is 6%, how much does Ava Darling need to invest today to have $17,446 in ten years? Selected Answer: 15,469 Correct Answer: 9,742 ± 5
- You purchased your home in 1992 for $345,000 and sold the house in 2022 for $1,050,000. What was your rate of return? Question 14 options: 3.40% 4.16% 3.06% 3.78%.Your older sister deposited $100,000 today at 12.5 percent interest for 10 years. You would like to have just as much money at the end of the next 10 years as your sister will have. However, you can only earn 10 percent interest. How much more money must you deposit today than your sister did if you are to have the same amount at the end of the 10 years? Question 6 options: 25,198 20,614 15,398 10,568 12,460You are offered $80,000 today or $400,000 in 10 years. Assuming that you can earn 16 percent on your money, which should you choose? Question content area bottom Part 1 If you are offered $400,000 in 10 years and you can earn 16 percent on your money, what is the present value of $400,000? $enter your response here (Round to the nearest cent.)