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What would be the present value of the lottery win

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Q1. You have just won the lottery. You and your heirs will receive $25,000 forever beginning one year from now. What is the present value of your winnings at a discount rate of 7%? What would be the present value of the lottery win if the first payment were received today?

Q2. Wolf & Co. is planning to save some money to buy new equipment. The company is opening an account today with a deposit of $15,000 and expects to earn 4% interest. After 3 years, it wants to add an additional $50,000 to the account if the account continues to earn 4% interest, how much money will the company have in its account five years from now?

Q3. Six years ago, James invested $3500 into an account. No other investments or withdrawals have been made. Today, the account is worth 7,403.16. What rate of return has James earned so far?

Reference no: EM132532218

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