This topic contains a solution. Click here to go to the answer

Author Question: You just won a lotteryCONGRATULATIONS Your parents have always told you to plan for the future, so ... (Read 41 times)

RRMR

  • Hero Member
  • *****
  • Posts: 557
You just won a lotteryCONGRATULATI ONS Your parents have always told you to plan for the future, so since you already have a well-paying job you decide to invest rather than spend your lottery winnings.
 
  The payment schedule from the lottery commission is 100,000 after taxes at the end of year one and 19 more payments of exactly 100,000 after taxes in equal annual end-of-the-year deposits (i.e., 20 deposits of 100,000 each, the first deposit is one year from today) into your account paying 7 compounded annually. How much money will be in your account after the last deposit is made?
  A) 2,000,000.00
  B) 3,637,896.48
  C) 4,099,549.23
  D) 4,486,517.68

Question 2

A/An ________ is a series of equal end-of-the-period cash flows.
 
  A) ordinary annuity
  B) annuity due
  C) perpetuity due
  D) None of the above



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

meganlapinski

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

Answer: C
Explanation: C) FV = PMT  = 100,000  = 4,099,549.23.
MODE = END
INPUT 20 7 0 -100,000 ?
KEY N I/Y PV PMT FV
CPT 4,099,549.23

Answer to Question 2

Answer: A




RRMR

  • Member
  • Posts: 557
Reply 2 on: Jul 10, 2018
Excellent


coreycathey

  • Member
  • Posts: 333
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

For a complete list of videos, visit our video library