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Unformatted text preview: Cost 80,000.00 Down 8,000.00 8,000.00 72,000.00 1 1,459.90 480.00 979.90 71,020.10 2 1,459.90 473.47 Suzie want to have $1,000,000 in the bank in thirty years. If the bank pays interest at 6% compounded semi-annually, how much does she need to deposit today to reach her goal? $ 169,733.09 Cindy wants to withdraw $1,000 per month for the next 5 years. She will withdraw her first amount in one month. The bank pays interest at 12% compounded monthly. How much does she need to deposit today to do this? $ 44,955.04 Heather hit the lottery!! She has the option of taking 560,000 today or 100,000 per year for the next 8 years of $1,000,000 in ten years. If she can deposity her money at 8%, ignoring taxes, which deal should she take? Options Present Value $ 560,000 cash today $ 560,000.00 $ 100,000 per year for next 8 years 574,663.89 Highest $ 1,000,000 ten years from today 463,193.49...
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This note was uploaded on 09/12/2010 for the course ACCT 101 taught by Professor Drkirch during the Spring '10 term at Ohio University- Athens.
- Spring '10