A state lottery commission pays the winner of the “Million Dollar” lottery annual installments of $50000 each year until the end of winner’s life. If the prevailing interest rate is 8%/year compounded continuously, find the present value of the winning ticket.

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: 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: The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the…

A: Requirement 1:

Q: Present Value of an Annuity On January 1, you win $3,440,000 in the state lottery. The $3,440,000…

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

Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5.…

A: Amount to be accumulated = P1000000 Number of deposits (n) = 4 r = 10% Let the annual deposit = A

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: Present Value of an Annuity On January 1, you win $1,100,000 in the state lottery. The $1,100,000…

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

Q: Omega Inc. purchased a deffered annuity which pays $23,000 at the beginning of every three months…

A: An annuity is a stream of cash flows that occurs at equal time intervals. This series of cash flows…

Q: The Sebastinian Arts Guild wants P5,000 at the end of each 2-months theater season for renovations.…

A: Given, The payments required is P5000 Rate is 9% compounded annually

Q: Felice Lucas has just won the state lottery and has the following three payout options for​…

A: Present value of the first option = Amount receivable at the end of each year x Present value of an…

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: You have won $1,000,000 in a lottery. Your winnings will be paid to you in equal annualyear-end…

A: We have the following information: Lottery - $1,000,000Installments - $50,000Number of Years - 20…

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: 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: 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: Pearl Corporation bought a new machine and agreed to pay for it in equal annual installments of…

A: Given information, Annual installment= $4,150 Number of years(n)= 10 years Interest rate(i) = 8%

Q: Determine the present value of your winnings.

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

Q: P30,000 worth of scholarship grant every year to selected engineering students. The initial amount…

A: initial deposit=100000 rate of interest =5% Compounding semiannual  Amount of scholarship =30000…

Q: For a certain multi-state lottery the prize was $14,200,000 that was paid out over 20 years with…

A: Given information: Total prize money of lottery is $14,200,000 Number of years is 20 years Equal…

Q: Gary won a lottery that will pay him $700000 at the end of each of the next twenty years. Blue…

A: Net present value (NPV) is the excess of the present value of cash inflows and the present value of…

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 employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the…

A: The current value of grant provided to employee will be the present value of 10 year annuity of…

Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,00 by September 1, year 5.…

A: When an equal amount is paid every period at the beginning of each period, it is called as an…

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

A: Given:

Q: The multistate Powerball Lottery, worth $182 million, was won by a single individual who had…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

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: Present Value of an Annuity On January 1, you win $2,900,000 in the state lottery. The $2,900,000…

A: Present value of annuity can be calculated as: = Annuity payment * Present Value annuity factor (i%,…

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: Several years ago, a man won $27 million in the State Lottery. To pay off the winner, the State…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

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: NEED HELP ASAP! An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the…

A: Present value refers to the current value of a sum of money in the future at a specified interest…

Q: Mr. Glen Secundo won a lottery paying P1,400,000 at the beginning of each year for 15 years. Find…

A: solution: Present value is the today's value of a future amount or future annual cash flows…

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: 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: Several years ago, an individual won $27 million in the state lottery. To pay off the winner, the…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: The next two items are based on the following information: House Publishers offered a contest in…

A: Non Interest Bearing Notes payable are reported at the face value against a discount on notes…

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…

Q: A winner of the state lottery was given two choices: receive a single lump sum payment now of $50…

A: The uniform payment will be determined in way that the present value of all the uniform payments…

Q: You've received a $100,000 education grant and want to deposit the lump sum and withdraw an equal…

A: PV=A×1-11+RNR pv=principal r=rate of interest per period n=number of period

Q: A lottery offers a $1,000,000 prize to be paid in 29 equal annual installments of $20,000 with a…

A: Ordinary Annuity = A= P[(1+r/n)nt-1 /(r/n)   A= Future Value P= Periodic payment N=No. of Payment…

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.