Time value concepts can be applied to lottery winnings. The winner can usually choose an annuity or a lump sum

Edward wishes to save enough money to purchase a retirement lake cabin. He is willing to spend $500,000 for the cabin and he can save $25,000 per year and invest the money into an account earning 8.00% per year

If Edward's investments come in the form of equal annual end-of-the-year cash flows and the first cash flow is in exactly one year, how long will it take him to save enough money to buy the lake cabin? A) Between 8 and 9 years B) Between 10 and 11 years C) Between 12 and 13 years D) Exactly 20 years

Short-term disability insurance generally provides benefits on disabilities from ________ after a short wait of ________ days

A) one day to three months; zero B) 30 days to three months; 7 C) three month to six months; 8 to 10 D) six months to two years; 8 to 30 E) none of the above