Value of an annuity versus a single amount personal finance problem assume that you just won the state lottery. your prize can be taken either in the form of $55 comma 000 at the end of each of the next 30 years (that is, $1 comma 650 comma 000 over 30 years) or as a single amount of $731 comma 000 paid immediately.

a. if you expect to earn 6% annually on your investments over the next 30 years, ignoring taxes and other considerations, which alternative should you take? why?
b. would your decision in part a change if you could earn 8% rather than 6% on your investments over the next 30 years? why?
c. at approximately what interest rate would you be indifferent between the two options?

What does the consumer price index measure? a. the change in prices of all goods and services over time b. the change in prices of specific goods and services over time c. the change in prices of final goods and services over time

Forecasting as a first step in the team’s decision making, it wants to forecast quarterly demand for each of the two types of containers for years 6 to 8. based on historical trends, demand is expected to continue to grow until year 8, after which it is expected to plateau. julie must select the appropriate forecasting method and estimate the likely forecast error. which method should she choose? why? using the method selected, forecast demand for years 6 to 8.

Assume that the following conditions exist: a. all banks are fully loaned up- there are no excess reserves, and desired excess reserves are always zero. b. the money multiplier is 5 .     c. the planned investment schedule is such that at a 4 percent rate of interest, investment =$1450 billion. at 5 percent, investment is $1420 billion. d. the investment multiplier is 3 . e.. the initial equilibrium level of real gdp is $12 trillion. f. the equilibrium rate of interest is 4 percent now the fed engages in contractionary monetary policy. it sells $1 billion worth of bonds, which reduces the money supply, which in turn raises the market rate of interest by 1 percentage point. calculate the decrease in money supply after fed's sale of bonds: $nothing billion.