Discussion 2

We have often heard that a dollar today is worth more than a dollar tomorrow. In light of what you learned about annuities, what advice would you offer to a current lottery winner regarding the option they should use in determining whether or not they should accept a lump sum payment or the annual payment from the lottery commision? Why or why not ?

3. Which lottery payout scheme is better? Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum, you get $2,950 today. If you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. At an interest rate of 8% per year, the winner would be better off accepting the    , since that choice has the greater present value.   At an interest rate of 10% per year, the winner would be better off accepting    , since it has the greater present value.   Years after you win the lottery, a friend in another country calls to ask your advice. By wild coincidence, she has just won another lottery with the same payout schemes. She must make a quick decision about whether to collect her money under the lump sum or the payments over time. What is the best advice to give your friend? The lump sum is…

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You see on TV that the Mega Millions is up to $2 million! You decide to buy a ticket ......... and you WIN!!! Unfortunately, you do not get that amount right away. Instead, this is the future value of an annuity. Let us examine some choices you have regarding your big win. a) You could choose to collect your winnings today, in the present day. The lottery people could invest this present value and earn 2.7% interest, compounded annually, and have the $2 million in 25 years. How much would they give you today?   b) The interest rate in part (a) is very conservative. You have a “friend” who advises you to take the money today and invest it with him, at 6.6% compounded quarterly, for those 25 years. How much would you have in 25 years if you did this? (What is the future value of the amount you computed in part (a)?)  c) Otherwise, you could choose to take the annuity. They will pay you nothing in the present day but will pay you A dollars each month for 25 years. Assume 2.7% interest…

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Topic:  Time Value and money  Concepts   Mavis Wanczyk receive only $336 million when she chose the lump-sum payment instead of the $758.7 million Powerball jackpot that she won? Was she robbed? What might she be able to do to with the cash she received so that she could eventually earn an amount that approaches the $758 million? If you were Mavis, would you choose the lump sum or the installment payments? Why?

- Why would a person want to purchase Universal Life Insurance? The face value of the policy remains the same forever It provides both pure insurance and cash value build up The cost is so low, a person can have the insurance and invest any amount left over The premium is fixed for the life of the policy

If you are an investor, you will put a sum amount in a bank account and will keep on adding that amount into that account until you want. Once you get to retire from your job you can start getting that amount in the form of constant or variable payouts. This amount considered as:   A.   Annuity   B.   Retirement planning   C.   Accumulate interest

Give typing answer with explanation and conclusion

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II. Instead of buying insurance for retirement, you decided to set aside some savings in the bank. You believe that saving money in the bank is safer and more convenient than buying insurance. A)IfyouinvestOMR15,000nowat10%compoundedannually,howmuchwillbeinyouraccount after 20 years?    B)IfyouinvestOMR15,000nowat10%compoundedquarterly,howmuchwillbeinyouraccount after 20 years? C)Discussthefactorswhatwillincreasethefuturevalueoftheamount.

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ANSWER USING Time Value of Money Calculations AND FORMULAS   Aya and Sakura would like to buy a house and their dream home costs $500,000.  Their goal is then to save $50,000 for a down payment and then would take out a mortgage loan for the rest.  They plan to put their monthly saved amount in a conservative mutual fund that has a track record of a 5.2% rate of return.  To be sure they don’t go spending this money on other things, they are going to move it into their investment account at the beginning of each month.  Their hope is to be able to buy this home in 7 years.  What would their monthly savings amount have to be to reach this goal?  What will be the total interest earned be?

Please answer question 1 after reading the scenario thank you. I am confused of which rate I should use for market rate(k) Question at the end Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest…

10:21 Exploring Annuities [DIR... • Sheet 3- Time Comparison 1. At the bottom of the page, click on Sheet 3. If you're using Google Sheets, you can add a 3rd sheet. Rename it "Time Comparison". On this sheet, we're going to look at two individuals that are paying into annuities for their retirement fund. We want to attention to when eac. these paying into their annuity. 2. Type "Age - stats of saving" in cell A2. 3. Type "Payment Amount (P)" in cell A3. 4. Type "Rate (i)" in cell A4. 5. Type "Number of Payments per year (n)" in cell A5. 6. Type "Years to retire at 65 (t)" in cell A6. Again, find some reasonable values for payment amount, interest rate, and number of payments. 7. In cell B1, type "Tommy". Then enter his age, "45", in cell B2. 8. In cell C1, type "Sammy". Then enter his age, "25", in cell C2. a. NOTE: Pick whichever names you'd like. 9. Enter the amounts you chose for payment, rate, and frequency in cells B3 thru B5. These amounts should be the same for C3 thru CS. 10.…

To give you a start, here is something you can compute and discuss among yourselves: Play-2-Win is the latest lottery game in your country, and you happen to be the latest winner of $10.5 million.  Your government has a guarantee on the funds and will not be paid before 3 years from today.  You can however sell your claim today at a rate of 8 percent for a lump sum cash payment.  What is the least amount you will sell your claim? Beginning this year, Mary is planning to save $800 each year for the next six years to take a vacation to commemorate the seventh year of her career.  Assuming the interest rate offered by her bank is 9 percent annually, how much will Mary have in the account at the end of seven years?  If Mary increases her savings to $1,500 annually, will this be enough to take care of her vacation which is estimated to cost $15,000. Suggested Answers that you should arrive at after computing and discussing. Give the questions a try when you are ready. Question 1:…

Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ?

Help me please with this question thanks sir try to with formula so i can just copy pls fast

Play-2-Win is the latest lottery game in your country, and you happen to be the latest winner of $10.5 million.  Your government has a guarantee on the funds and will not be paid before 3 years from today.  You can however sell your claim today at a rate of 8 percent for a lump sum cash payment.  What is the least amount you will sell your claim?

!! Question 15.2 Unanswered 3 attempts left You have discussed your retirement plans with your significant other and plan to move to a state with a lower cost of living upon retirement. You plan on living off $85,000 annually. You understand that your retirement account will likely yield a 5% return. Using the 4% Rule, how much money do you need in your retirement account upon retirement?(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $} Type your response Submit

Please correct answer and don't use Ai solution

What is the interest rate, monthly deposits, time amount, target Amount, actual Amount and different? And what is the final answer to the question? I'm really lost right now. I was told to use the (saving formula for this)

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

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help  please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working!

answer with financial calculator not solving  Don't hand writing

Scenario 2.Suppose that you withdraw ₱ 1,500.00 from your savings account. Over theweekend, several people want to borrow money from you. Read the stories anddecide to whom you will lend your money.Story1. Your younger sister is having a garage sale. She needs cash to makechange for the day. She will sell you a bond for ₱ 1,000.00 You will keep thebond for a week, and she promises to pay you back.Story2. Your older brother has a small business idea but doesn’t have anymoney. He wants to borrow your ₱ 1,500.00 and promises to pay you back ₱1,800.00 in four weeks.Story3. Your best friend at school, whom you know very-well, wants to borrowyour ₱ 1,500.00 to buy cupcakes. She plans to sell at a higher price andpromises to pay you back ₱1,700.00 in two weeks.Whose bonds will you buy? Why?