document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=901402>Question 901402</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Really Need help. 100 question HW. the ones i struggled the most on! Please help\r<BR>\n" );
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document.write( "1. Assume your business associate owes you $ 9500. Also assume they offer either $ 7700 now or $ 1900 per year for 5 years, starting now. Assume a 7 % market interest rate, compounded continuously. \r<BR>\n" );
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document.write( "How much would you have at the end of 5 years if you choose to take the $ 7700 offer now, and you use the market to earn interest on the funds? $<BR>\n" );
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document.write( "How much would you have at the end of 5 years if you choose to take the installments each year, and you still used the market to earn interest on the the funds? $  \r<BR>\n" );
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document.write( "Is it better to take the lump sum?   (Y for yes, N for no.)  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #546721 by </B><A HREF=/tutors/aboutme.mpl?userid=solver91311><B>solver91311(24713)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=solver91311><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=solver91311><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=546721\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font face=\"Times New Roman\" size=\"+2\">\r<BR>\n" );
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document.write( "If you take the lump sum of $7700, then you need to calculate the future value of a single investment at 7% for 5 years:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV\ =\ PV(1\ +\ i)^n\">\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV_{lump}\ =\ 7700\left(1.07\right)^5\">\r<BR>\n" );
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document.write( "If you take the periodic payments, each made at the beginning of the year, then you need to calculate the future value of an annuity due on 5 annual payments of $1900 at 7% per annum.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV\ =\ C\left[\frac{(1\ +\ i)^n\ -\ 1}{i}\right](1\ +\ i)\">\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV\ =\ 1900\left[\frac{(1.07)^5\ -\ 1}{0.07}\right](1.07)\">\r<BR>\n" );
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document.write( "Do the arithmetic and compare the results.\r<BR>\n" );
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document.write( "John<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE e^{i\pi}\ +\ 1\ =\ 0\"><BR>\n" );
document.write( "My calculator said it, I believe it, that settles it<BR>\n" );
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