Answer each of the following independent questions Alex Meir recently won a lottery and has...
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Answer each of the following independent questions Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $94,000 cash immediately, (2) $38,000 cash immediately and a six-period annuity of $9,700 beginning one year from today, or (3) a six-period annuity of $19,600 beginning one year from today. (FV of $1, PV of $1. FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1-a, Assuming an interest rate of 7%, determine the PV value for the above options Annuity Payment Immediate Cash PV Annuity PV Option Option 1 Option 2 Option 3 1-b. Which option should Alex choose? O Option (1) O Option (2) O Option (3) 2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2025. Weimer will make annual deposits of $190,000 into a special bank account at the end of each of 10 years beginning December 31, 2016. Assuming that the bank account pays 8% interest compounded annually, what will be the fund balance after the last payment is made on December 31 2025? Table or calculator function Payment Future value
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