Jon Smoltz has just won the lottery and has been promised an annual payment of $75,000 every year forever starting one year from today.
Jon Smoltz has just won the lottery and has been promised an annual payment of $75,000 every year forever starting one year from today. If the annual interest rate is 8%, what is the present value of the winnings?$69,444$81,000$866,056$937,500Suppose I will be investing $20,500 at the end of each year for the next 25 years for your retirement. At the end of this 25 year time period I hope to have accumulated $1 million. What annual rate of return would you have to earn on your investments to reach your target? (Round your answer to the nearest whole number percentage)12%10%7%5%David Henderson plans to buy a lawn tractor for $2,750 after two years. If the annual interest rate he could earn is 5.0%, compounded every six months, how much money should he set aside today for the purchase?$2,491$2,564$2,289$2,432Suppose Joe bought a new car with a 5 year loan that requires monthly payments. The amount borrowed is $27,000. The monthly payment is $526.18. What is the annual percentage interest rate (APR) on this loan?6.33%3.97%6.00%17.42% Tbell Corporation has been told by its investment bankers that it would have to pay 7% interest to successfully sell new bonds. The company has bonds outstanding, issued 5 years ago, on which the company is paying 8% annual interest. The company’s tax rate is 45%. What is its after-tax cost of debt if it decides to borrow new funds?2%8.32%7.84%3.85%