On a whim you purchased a scratch−off lottery ticket at the gas station. It must have been your lucky day because you won $3,000,000. Being logical and rational you decide to invest the money at 5​% for 14 years until you are ready to start a family. At the end of 14 ​years, how much will your investment be​ worth? -the future value of​ $1 table -the future value of annuity of​ $1 table

Q: Future value: Kate Eden received a graduation present of $2,000 that she is planning on investing in…

A: Future Value formula used: FV= PV(1+r)^n FV= future value PV= future value = 2000 r= rate of…

Q: Use a financial calculator or computer software program to answer the following questions:…

A: given, fv = $750,000 n = 20  r = 11%

Q: You Just won a lottery that promise to pay you 100,000 exactly 10 years from now Because the 100,000…

A: Immediate cash flow is that cash flow which an investor is required to incur at time zero. This cost…

Q: Congratulations! You have just won a $40 million lottery and have electedto receive $2 million per…

A:

Q: . Anton has P100,000 now, he would like to invest his money in a money market security that earns 6%…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: st inherited some money, and a broker offers to sell you an annuity that pays $16,800 at the end of…

A: Value of annuity is present value of all year end money received over the period of life.

Q: How much could you save for retirement if you chose to invest the money you spend on Starbucks…

A: Please refer to the image below.

Q: You win at a lottery that pays you $1000 a week for life! (a) Assuming that a year counts 365.25…

A: Since the lottery pays $1000 a week A. Total week in a year = 365.257 = 52.17 weeks Total annual…

Q: 1. Marcus would like to save up $3 million for his retirement. He has chosen a stock index fund that…

A: Hai there! thank you for the question. Question has multiple subparts. As per company guidelines…

Q: Your grandfather would like to share some of his fortune with you. He offers to give you money under…

A: Determination of present value helps the business entity in deciding whether to invest in a proposed…

Q: Scenario: Suppose you have a new baby. When the child is 18 years old and ready to attend college,…

A: Hi, to answer 3, 1 and 2 was required. Hence, 1 and 2 has also been solved as below.

Q: You plan to pay $38,000 cash for the new truck you want to buy 5 years from now. You are a very…

A: Future Value:   The future value is the amount that will be received at the end of a certain period.…

Q: A person needs to have $15,000 at the end of 6 years and $20,000 at the end year 7 to fulfill his…

A: Principal value (PV) = $12,000 Maturity value (FV) = $15,000 + $20,000 = $35,000 Present value…

Q: 1. John’s goal in life is to be a millionaire. He has $6,980 in a saving account and figure he is…

A: 1. The formulation sheet is annexed below: To open the "NPER function" window - MS-Excel -->…

Q: What annual interest rate would the investment have to yield to double in 5 years?

A: Present Value (Investment) = $2500 Future Value = $2500 x 2 = $5000 Time = 5 Years Rate of Return =…

Q: After 2 years of investing to be ready for schoo would you rather have the final amount of either:.…

A: The formula for compound interest is A =P (1 + r/n)^(nt) A final amount P initial principal…

Q: If you were the $10,000,000 winner of the Mega-Millions Lottery, which payout option would be the…

A: The concept of the time value of money states that the same amount of money is worth more now than…

Q: How much could you save for retirement if you chose to invest the money you spend on Starbucks…

A: Future Value is the Amount that an individual receives after foregoing its current consumption such…

Q: hat rate of return did you earn on this investment?

A: Return can be calculated as: Return = Selling Value - Buying ValueBuying Value

Q: You are the lucky winner of the Ohio Lottery !  Congratulations.   The Lottery tells you that you…

A: $20,000,000 prize is to be paid in 20 annual installments of $1,000,000 each.  Interest rate = 8%

Q: 4. Your father entrusts you with the funds for your college education. He gave you two options: a)…

A: Details of Ques-4: First Offer is P200,000 now Second Offer is P500,000 ten year from now Required…

Q: Ronald has an investment opportunity that promises to pay him $52,000 in three years. He could earn…

A: Present value = Future value * Present value of $1 table factor

Q: 21)Today is your 21st birthday, and you are opening up an investment account. Your plan is to…

A: Given information : Periodic payments = $2000 Interest rate = 10% Time period = 45 years

Q: George Robinson must decide how to invest $11,000 that he just inherited. What would be the future…

A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

Q: Congratulations! You have just won the lottery! However, the lottery bureau has just informed you…

A: The question is based on the time value of money; the concept explains the change in the value of…

Q: What would be the future value

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: suppose you are planning to buy a home in 8 years from now that costs you 55980 OMR, How much should…

A: The annuity term is a financial term that reflects a stream of equivalent periodic cash flows over a…

Q: 2. Suppose you have just celebrated your 17th birthday. A rich uncle set up a trust fund for you…

A: The current value of all the amount which will receive in the future is referred to as the present…

Q: You just won the lottery and are offered the following payout: $1,000,000 immediately plus another 6…

A: Payout: Immediate Payment = 1,000,000 Yearly Payments =  Year Payment 1 500,000.00 2…

Q: 12. Justine is thinking about purchasing an investment from RCBC Capital. If she buys the…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Present value)  Sarah Wiggum would like to make a single investment and have ​$2.0 million at the…

A: As per the given information: Single investment - $2,000,000  Period - 35 years Earning on mutual…

Q: You have a chance to buy an annuity that pays RM1,000 at the beginning of each year for 5 years. You…

A: The payment required to be made for the investment can be calculated with the help of present value…

Q: Your cousin Vance tells you that you can invest $15,000 in his business, and he will pay you back…

A: Solution Step (1) The Return is computed as shown below Future value = Present value *[1+ Interest…

Q: On a whim you purchased a scratch-off lottery ticket at the gas station. It must have been your…

A: It is given that a lottery ticket was won for $15000,000 and was invested at a 6% interest rate for…

Q: In 25 years, you are hoping to have saved $120 000 towards your child’s university education. If you…

A: Yearly Investment ,PMT = $3000 Time Period = 25 years Future Goal = $120,000   Investing is a…

Q: Joe Pierce has been offered the opportunity of investing $178,556.90 now. The investment will earn…

A: Initial investment = $178,556.90 Interest rate = 0.08 Accumulated value = $500,000 Period = ?…

Q: Sarah Wiggum would like to make a single investment and have $1.2 million at the time of her…

A: Future Value = $1.2 million Time Period = 30 years Rate of Return = 4%

Q: You purchased a house for 850,000 cash 4 years ago. You can sell it today for 980,000. What rate of…

A: Rate of return is the percentage of income earned from an investment.

Q: Suppose you are committed to owning a $150,000 Ferrari. Required: If you believe your mutual fund…

A: Sum required in future, FV = $ 150,000Annual rate of return, r = 10.25%Number of periods = n = 10

Q: Problem Solving. Solve the following problems that deal with Present Value of money or Future Value…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Your dreams of becoming rich have just come true. You have won the State of​ Tranquility's Lottery.…

A: Given information: Annual payment is of $160,000 Number of years is 25, Interest rate is 6%

Q: A pleasant gentleman has advised you via email that you are entitled to a $1 million inheritance.…

A: Note: Future value is taken as $3300386.89457367, no intermediate rounding is done. With a future…

Q: 1. Suppose you win the lottery and are given the following three options: (1) Receive 30 million…

A: according to the rule,  we will answer the first three subparts of  question only, for the remaining…

Q: Yani has $12,000 for investment purposes. His bank has offered the following three choices. Solve,…

A: Investment = 12000 Monthly Payout = 100 Time Period = 5 years*12 = 50 months Lump Sum Amount at…

Q: You are planning to buy your dream mansion and for that you have decided to make 3 independent…

A: To calculate the accumulated value of the annual deposits in all three investments, future value of…

Q: How much could you save for retirement if you chose to invest the money you spend on Starbucks…

A: Future value is the value of invested amount at a future date. Future value = Present value * FVF…

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.