How much will you have for down payment at end of year three

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1. Arthur has an estate that is worth $2,000,000 today. He wants to estimate what it will be worth in 23 years. If the estate grows at 7% quarterly, how much will it be worth in 23 years?

2. You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $5,000 at the end of the first year, and you anticipate that your annual savings will increase by 20% annually thereafter. Your expected annual return is 9%. How much will you have for a down payment at the end of Year 3? Round your answer to two decimal places.

3. Lincoln has won the Illinois lottery. He has the option of taking $2,300,000 in cash or receiving annual payments at the beginning of each year for 20 years. If the lottery estimates it will earn 7.5% on the balance of the account over the next 20 years, how much would his payments be?

Reference no: EM131983304

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