A. 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?
B. 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?
C. 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?

1. 👍 0
2. 👎 0
3. 👁 100
1. These questions are so outdated, that they're laughable.

Market interest rates at 12%?? What market is that? The market just went down drastically.

Where is Mary getting 10% interest on an account? My savings account barely pays 1%.

If Mary and Joe want \$10,000 in three years, they'd better add at least \$2,200 a year for the next three years.

1. 👍 0
2. 👎 0
2. Well I guess I came to the wrong place for help. If you didn't know how to answer it maybe you shouldn't have bothered to reply. Oh, and I think that it was pretty obvious that the problems were outdated.

1. 👍 0
2. 👎 0
posted by Julie

## Similar Questions

1. ### Personal Finance

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

asked by Sue on October 11, 2008
2. ### finances

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

asked by Tina on April 30, 2007
3. ### Static

The country of Statland runs a national lottery for its people. In this lottery, an urn contains 42 balls that are individually numbered 1, 2, ..., 42. Each week, 5 balls are drawn from the urn without replacement. Gamblers pay a

asked by De on January 24, 2015
4. ### math!

Imagine that you are doing research for a term paper in your English class and you have chosen the topic of “expected winnings of a lottery.” You find the following information for your state’s lottery: Prize Probability

asked by emma on July 31, 2013
5. ### Finance

Sarah just won a \$3,000,000.00 lottery. According to the lottery they will pay her a lump sum of \$500,000.00 on October 1, 2012 and the balance in equal annual installments for 10 years. Assuming that you are the director of the

asked by Connie on September 25, 2012
6. ### personal finance

A.After a protracted legal case, Joe won a settlement that will pay him \$11,000 each year at the end of the year for the next ten years. If the market interest rates are currently 5%, exactly how much should the court invest

asked by Sandra on June 20, 2010
7. ### personal finance

After a protracted legal case, Joe won a settlement that will pay him \$11,000 each year at the end of the year for the next ten years. If the market interest rates are currently 5%, exactly how much should the court invest today,

asked by laura on November 10, 2009
8. ### Personal Finance Concepts

After a protracted legal case, Joe won a settlement that will pay him \$11,000 each year for the next ten years. If the market interest rates are currently 5%, exactly how much should the court invest today, assuming end of year

asked by Anonymous on August 26, 2009
9. ### personal finance concepts

Please answer these questions: A. After a protracted legal case, Joe won a settlement that will pay him \$11,000 each year at the end of the year for the next ten years. If the market interest rates are currently 5%, exactly how

asked by cthj on November 9, 2009
10. ### Finance

Please answer these questions: 1. After a protracted legal case, Joe won a settlement that will pay him \$11,000 each year at the end of the year for the next ten years. If the market interest rates are currently 5%, exactly how

asked by Ecs on November 9, 2009

More Similar Questions