(Solved): E 5-45 Future and present value LOS-3, LO5-7, LO5-8 Answer each of the following independent questio ...
E 5-45 Future and present value LOS-3, LO5-7, LO5-8 Answer each of the following independent questions. Yoa recently won a lostery and have the option of receiving one of the following three prizes: (1)
$64,000cash immediately, (2)
$20,000cash immediately and a six-year annuity of
$8,000beginning one year from today, or (3) a six-year annuity of
$13,000beginning one year from today. Assuming an interest rate of
6%compounded annually, which option should you choose? A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of
$100,000into a special bunk account at the end of each of 10 years. Assuming the bank account pays
7%interest compounded annually, what will be the fund balance after the last payment is made in ten years?
