Analyze the following:List several personal financial problems for which you or other individuals might use the concepts from the Lectures to help you make this decision.
Calculate the value in 5 years of $1,000 deposited in a savings account today if the account pays interest at a rate of 8% per year, compounded annually.Congratulations, you have just won the Publishers Corporation Sweepstakeâ€™s! Your winnings are $1,000,000 paid over ten years (end of year) annuity of $100,000 per year for ten years; your opportunity cost is 6%.
Would you accept $600,000 in cash now or take the 10 year annuity, show your work.Suppose you wish to purchase a house 5 years from now and estimate that an initial down payment of $25,000 will be required at that time.
What size annuity payment will result in a lump sum equal to $25,000 assuming you made equal annual end-of-year deposits in an account paying annual interest of 8% for 5 years, show your work.Needs to be 250 plus words. In text ciation with pg number along with refereces and title page.