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Your girlfriend just won the Florida lottery

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Your girlfriend just won the Florida lottery 1. Your uncle has $300,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, starting at the end of this year. He also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end? a. 14.21 b. 14.96 c. 15.71 d. 16.49 e. 17.32 2. Your Aunt Ruth has $500,000 invested at 6.5%, and she plans to retire. She wants to withdraw $40,000 at the beginning of each year, starting immediately. How many years will it take to exhaust her funds, i.e., run the account down to zero? a. 18.62 b. 19.60 c. 20.63 d. 21.71 e. 22.86 3. Your aunt has $500,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end? a. 15.54 b. 16.36 c. 17.22 d. 18.08 e. 18.99 4. Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. a. 7.12% b. 7.49% c. 7.87% d. 8.26% e. 8.67% 5. Your girlfriend just won the Florida lottery. She has the choice of $15,000,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity? a. 3.44% b. 3.79% c. 4.17% d. 4.58% e. 5.04% Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Your girlfriend just won the Florida lottery

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