1. Your friend just won the powerball lottery. It is supposed to be "worth" $10,000,000. She can take the lump sum of $10,000,000 or she is offered annuity payments over 20 years. What would the payment have to be to make it more attractive to take the annuity option over the lump sum? Do any other factors come into play? Let's discuss.
2. You want to invest and save your money in a bank account. Let's say you have $2000 to work with. Please describe to me/the class, all of the different investments that you have been exposed to in the banking arena.
3. Do you have a mortgage loan? (not required to answer yes/no, that's private info). Let's say you do. Let's say the loan is for $100,000, 30 years fixed, at 5% interest rate. You are in year 4 of the loan. describe what the pieces of the loan are and what the payments look like. Are you paying off any of the principal part of the loan?