Homework Help: Personal Finance

Posted by Sue on Saturday, October 11, 2008 at 4:19am.

1. Joe won a lottery jackpot that will pay him $12,000 each year for the next ten years. If the market interest rates are currently 12%, how much does the lottery have to invest today to pay out this prize to Joe over the next ten years?
2. Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the money in this account for seven years. How much will she have in the account at the end of the seventh year?
3. Mary and Joe would like to save up $10,000 by the end of three years from now to buy new furniture for their home. They currently have $2500 in a savings account set aside for the furniture. They would like to make equal year end deposits to this savings account to pay for the furniture when they purchase it three years from now. Assuming that this account pays 8% interest, how much should the year end payments be?

Show all work for each assignment and explain each step carefully.

Personal Finance - Writeacher, Saturday, October 11, 2008 at 9:22am
Please note that we don't do students' homework for them. If there's not a tutor with this specialty online right now, be sure to go back into your textbook or use a good search engine. http://hanlib.sou.edu/searchtools/

Once YOU have come up with attempted answers to YOUR questions, please re-post and let us know what you think. Then someone here will be happy to comment on your thinking.

=)

Answer this Question

Related Questions

Business - A. Joe won a lottery jackpot that will pay him $12,000 each year for ...
finances - Joe won a lottery jackpot that will pay him $12,000 each year for the...
Personal Finance - After a protracted legal case, Joe won a settlement that will...
Personal Finance Concepts - After a protracted legal case, Joe won a settlement ...
personal finance concepts - Please answer these questions: A. After a protracted...
Finance - After a protracted legl case, Joe won a settlement that will pay him $...
personal finance - A.After a protracted legal case, Joe won a settlement that ...
personal finance - After a protracted legal case, Joe won a settlement that will...
Personal Finance Concepts - After a protracted legal case, Joe won a settlement ...
finanace - After a protracted legal case, Joe won a settlement that will pay him...

For Further Reading

First Name:
School Subject:
Answer: