A lottery offers a $1,000,000 prize to be paid in 29 equal annual installments of $20,000 with a 30th final payment of $420,000. What is the total value of this annuity after the final payment if the current annual rate is 2%? (Round your answer to the nearest cent. Assume the final payment is made after the last installment payment, but before the balance of the account is compounded again.)

Q: On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal…

A: Present value of winnings = Annual installments x Present value factor (5%, 6 years)

Q: On January 1 you win $800,000 in the state lottery. The $800,000 prize will be paid in equal…

A: PV stands for the Present Value, which is defined as the current value of the future amount of money…

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: An annuity is a type of financial product offered by insurance companies and financial institutions.…

Q: Bart Company offered a contest in which the winner would receive P1,000,000 payable over twenty…

A: Introduction: Note Payable is Sometimes a promissory note in which one party promises to pay some…

Q: Janess company bought a new machine and agreed to pay in equal annual installment of P300,000 at the…

A: Solution: Amount should be reported as note payable if financial statements were prepared today =…

Q: January 1, you win $2,500,000 in the state lottery. The $2,500,000 prize will be paid in equal…

A: Present Value = Annual Payment * PVIFA(10 years, 6%)

Q: On January 1, you win $3,440,000 in the state lottery. The $3,440,000 prize will be paid in equal…

A: Present value of winnings = Annual installments  amounts x Present value factor (5%, 8 years)

Q: Present value of an annuity On January 1, you win $43,500,000 in the state lottery. The $43,500,000…

A: Present value of winnings is the product of Annual installments and Present value annuity factor .…

Q: On January 1, you win 5,000000 in the state lottery. The 5,000,000 prize will be paid in equal…

A: Present value of winnings = Annual installments  x Present value of an annuity of $1 (5%, 10 years)

Q: On January 1 you win $1,900,000 in the state lottery. The $1,900,000 prize will be paid in equal…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal…

A: Present value of future cash inflow discounted at 12% is the present value of your winnings

Q: Whispering Winds Corp. has just purchased equipment that requires annual payments of $75000 to be…

A: Present value is calculated based on annual cash flows and the discount rate. The annual payment is…

Q: A lottery pays the winner $1 million in 20 equal annual payments of $50,000. The first payment will…

A: Working note:

Q: On January 1, you win $4,000,000 in the state lottery. The $4,000,000 prize will be paid in equal…

A: Present Value: The value of today’s amount to be paid or received in the future at a compound…

Q: On January 1, you win $4,800,000 in the state lottery. The $4,800,000 prize will be paid in equal…

A: Present value of winnings = Annual installments x Present value factor (6%, 10 years)

Q: On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal…

A: Present value: The value of today’s amount expected to be paid or received in the future at a…

Q: Acme annuities recently offered an annuity that pays 6.0% compounded monthly. What equal monthly…

A: We use PMT function in financial calculator or excel to solve monthly payments

Q: A lottery offers a $1,000,000 prize to be paid in 20 equal installments of $50,000 at the end of…

A: Information Provided: Payments annually = $50,000 Number of payments = 20 Interest rate = 6%

Q: A payment of $35,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Let the equal payments = X The payments are to be made in year 2, 4 and 7. Interest rate = 4.5%…

Q: On January 1, you win $2,500,000 in the state lottery. The $2,500,000 prize will be paid in equal…

A: The Present value of lottery won and get in installments for next 10 year of $ 250000 , would be…

Q: On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal…

A: Formula: Present value amount = Yearly amount x PV factor  Multiplying yearly amount with PV factor…

Q: Determine the present value of your winnings.

A: In the given case, Annual cashflows = 7250000 Interest rate         = 5% Time period         = 6…

Q: Present Value of an Annuity On January 1, you win $4,800,000 in the state lottery. The $4,800,000…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Present Value of an Annuity On January 1, you win $2,200,000 in the state lottery. The $2,200,000…

A: Present value of annuity can be computed by multiplying the present value of annuity of $1 at given…

Q: An insurance company offers an annuity of 8 years with $1425 quarterly payments at $22000. Given…

A: in this we have to calculate rate of return on both investment and compare both.

Q: A man takes on a loan of $135,000. The loan is being repaid annually by a 10-year increasing…

A: As given in question, Loan amount = $135000 Tenure = 10 yrs Initial payment = $10000 Subsequent…

Q: are ? k of &, Deposits of $100 are made at the end of each calendar year from 2014 through 2019…

A: Time value It tells value received today has more value than that of receiving the exact value later…

Q: Deposits of $100 are made at the end of each calendar year from 2014 through 2019 inclusive. The…

A: Perpetuity is a series of payment which is made for an indefinite period of time. It does not end in…

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: The equivalent periodic cost is the periodic payment made towards the acquisition of an asset or…

Q: A state lottery commission pays the winner of the "Million Dollar" lottery 20 annual installments of…

A: Given:

Q: A lottery offers a prize of $750 every week for 5 years. The first payment will be made one week…

A: Given data, annuity Payments A= $750 i = interest rate = 4.4% m = compounding frequency = weekly =…

Q: You purchase a TIP note with an original principal amount of $1,000,000 and a 10 percent annual…

A: The interest is an expected minimum return on the investment made by the investor. The coupon…

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: Hot Issue Company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000…

A: Present Value of Annuity Due (PVAD): It is the value calculated at the end of the number of periods…

Q: : On January 1, 1999, Bitf purchases an annuity for 50600 dollars. The annuity makes annual payments…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: On January 1. you win $60.000.000 in the state lottery. The $60.000.000 prize will be paid in equal…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  Solution:  Present value of winnings:  Payment…

Q: For $10,000, you can purchase a five-year annuity that will pay $ 2,504.57 per year for five years.…

A: Duration of an annuity means the time period for which the annuity will provide return to the…

Q: On January 1, you win $46,000,000 in the state lottery. The $46,000,000 prize will be paid in equal…

A: Present value is the worth of future cash flows at a discounted rate.

Q: An annuity with a cash value of $14,000 earns 7% compounded semi-annually. End-of-period semi-annual…

A: An annuity is defined as the fixed payment made at the beginning or the end of the period for a…

Q: A state lottery commission pays the winner of the “Million Dollar” lottery annual installments of…

A: In this case , to know how much winner will get , we have to use formula of future value of annuity…

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Given That: P.V=$23000 Payment is done in 3 equal payment Rate of interest= 4.25% Duration= 6 years…

Q: annual deposit should BOBOT Company make for four years in order to accumulate the desired amount on…

A: Plan to accumulate = P5,000,000 by July 1,2023  To Make 4 equal annual deposits at interest 10%…

Q: The semiannual tuition payment at a major university is expected to be $36,000 for the 4 years…

A: Since the payment is made at the end of the period, it is an ordinary annuity. The annual rate shall…

Q: A company offered a contest in which the winner would receive P 1,000,000, payable over twenty…

A: Notes Payable: It is the liability of the company which generally has to pay within a year. This is…

Q: On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal…

A: Given, Lottery to be received in 10 Installments at the end of Each year   R = Interest Rate = 6%…

Q: Joshua Company bought a new machine and agreed to pay n equal annual installment of P600,000 at the…

A: In order to determine the interest expense, the amount reported as notes payable is required to be…

Q: On January 1, you win $5,000,000 in the state lottery. The $5,000,000 prize will be paid in equal…

A: Given that: Instalment amount = $500,000 Period = 10 years Interest rate = 6%

Q: On January 1 you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal…

A: The present value or estimation of an annuity is the current estimation of future installments or…

Q: On January 1 you win $3,480,000 in the state lottery. The $3,480,000 prize will be paid in equal…

A: Present Value: The value of today’s amount to be paid or received in the future at a compound…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.