What is the present value of prize is the interest rate

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1. A lottery will pay $8,500,000 per year for 20 years. What is the present value of this prize is the interest rate is 4.8%?

2. What is the monthly payment on a mortgage if you borrow $350,000 at 3.5% for 30 years?

3. Five years from now you will get a $7,500 payment. Once they start, you will get these payments forever. If you can earn 8%, what is the PV of these payments?

4. You want to initially fund a scholarship for $20,000. You want to ensure that that it keeps up with 4% tuition growth. You want to fund this scholarship forever. If you can earn 7% on invested capital, how much do you need to donate to fund this scholarship?

Reference no: EM132523807

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What is the present value of prize is the interest rate : 1. A lottery will pay $8,500,000 per year for 20 years. What is the present value of this prize is the interest rate is 4.8%?
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