Question 9 10 Points You Borrowed 40 000 The Terms Of The Loan Was 6 Per Month And You Agreed To Pay Off In 5 Yea 1 (17.56 KiB) Viewed 13 times
Question 9 10 Points You Borrowed 40 000 The Terms Of The Loan Was 6 Per Month And You Agreed To Pay Off In 5 Yea 2 (28.03 KiB) Viewed 13 times
Question # 9 (10 points) You borrowed $40,000. The terms of the loan was 6% per month and you agreed to pay off in 5 years. What is your monthly payment (annuity)? (5pts) What are questions or concerns you would have with this contract and deal?(5pts) Question # 10 (25 points) You win a jackpot of $1,000,000 from the MI lottery. Which should you take? State your assumptions and show your calculations. Option 1 (cash flow diagram and total amount 10 pt) The lottery rules say that total will be paid out to you in 20 equal annual payments of $50,000 each. You will invest this money at 5% interest per year. Option 2 (cash flow diagram and total amount 10 pt) Alternatively, you can take the lump sum cash value, which is about $500,000 that you will also invest at 5% each year.
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