13. You won $100 000.00 in a lottery and you want to set some of that sum aside for 4 years. After 4 years you would like to receive $2000.00 at the end of every 3 months for 6 years. If interest is 5% compounded semi-annually, how much of your winnings must you set aside?

13. You won $100 000.00 in a lottery and you want to set some of that sum aside for 4 years. After 4 years you would like to receive $2000.00 at the end of every 3 months for 6 years. If interest is 5% compounded semi-annually, how much of your winnings must you set aside?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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13. You won $100 000.00 in a lottery and you want to set some of that sum aside for 4 years.
After 4 years you would like to receive $2000.00 at the end of every 3 months for 6 years. If
interest is 5% compounded semi-annually, how much of your winnings must you set aside?

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