How much will phillips construction pay johnson electric

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1. BDI Inc. agrees to pay Good Acre Investments $1,423,775 each year for the next 10 years to cover a $10,000,000 debt that it owes. What is the implied interest rate?

2. Johnson Electric sold a large generator to Phillips Construction for $1100000. Phillips agrees to pay Johnson Electric 5 equal installments at then end of each year for the next 5 years at an interest rate of 5%. How much will Phillips Construction pay Johnson Electric each year?

3. The BIG LOTTO lottery has a jackpot of $170 million. The winner will receive equal payments of $8.5 million each year for the next 20 years at the end of each year. The winner has the option of receiving a lumpsum payment today. With a discount rate of 3%, what would be the lumpsum payment amount?

Reference no: EM131786719

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