Marcus has won the grand prize in lottery

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Marcus has won the grand prize in a lottery and must choose between the following three options: a. Receive a lump sum payment of $9,000,000. b. Receive annual end of the year payments of $1,000,000 for the next 12 years. c. Receive annual end of the year payments of $1,500,000 for the next 8 years. d. Which option should Marcus choose based on an annual investment rate of 8%? How much money does Kristi need to have in her retirement savings account today if she wishes to withdraw $25,000 per year for 30 years? She expects to earn an average rate of 8%. What is the future value of $4,900 invested for 8 years at 7 percent compounded semiannually?

Reference no: EM131848119

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