1. Research interest rates for a savings account, checking account, and money market
account a...
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Mathematics, 19.02.2020 18:30 dee21099
1. Research interest rates for a savings account, checking account, and money market
account at different financial institutions. Note the compounding period for each. How much would $10,000 be worth in each account in 50 years?
2. The state lottery offers to pay winnings in 25 annual payments or one lump sum, sometimes called a cash-out option. This week’s lottery has a jackpot of $30 million and a cash-out value of $18.2 million. Granted that the odds are highly unlikely one would win, which option should a winner take—annual payments or a lump sum? Why?
3. Pick an expensive item you want to buy within the next five years. Using current interest rates, find out how much you would have to save today. List the possible roadblocks to reaching the goal.
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