In May 1992, a 60 yr old nurse gambled $12 in a Reno casino and walked away with the biggest jackpot in history - $9.3 million. In reality, the jackpot wasn't really worth $9.3 million. The sum was to be paid in 20 annual installments of $465,000 each. What is the present value of the jackpot?
A) Calculate the monthly repayments on a $20,000 loan if interest rates are 12% p.a. compounded monthly, and it is to be repaid in equal instalments over 2.5 years. b) What balance is outstanding immediately after the 18th payment is made?
Determine what payments are required to repay a $100,000 loan over 20 years in equal monthly installments if interest rates remain at 9% p.a. (compounded monthly)
Blue Grass Life insurance is trying to sell you an investment policy that will pay you and your heirs $10,000 per year forever. If the required return on this investment is 12%, how much will you pay for the policy?