Shane wants to invest money in an investment account paying 6% interest compounding semi-annually. Shane...
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Shane wants to invest money in an investment account paying 6% interest compounding semi-annually. Shane would like the account to have a balance of $100,000 four years from now. How much must Shane deposit to accomplish his goal?
2. Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $300,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 5% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives?
Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1)
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