Jim just won the lottery! He will be paid $2 million per year for 20 years, starting today. (Payments are made at the beginning of the year.) The lottery offers you a one-time lump sum payment today of $30.9 million in place of the annuity. What APY is the lottery using to calculate the present value of the lottery winnings? (Enter your answer as a percentage rounded to one decimal place).
Question 12
7 pts
Jack just turned 28 years old yesterday. He has saved $50,000 so far towards retirement. He wants to have $3 million when he retires at age 60. How much does he have to save every month, first payment one month from today, if Jack earns 9% APR (0.75% monthly) on all his money? (Round to the nearest cent.)
Question 13
4 pts
Consider the value in 10.75 years of a 10-year annuity with the first $2,500 payment being made one year from today. What is