Determine the present value of your winnings.
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: 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: 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: On January 1, you win $800,000 in the state lottery. The $800,000 prize will be paid in equal…
A: INTRODUCTION Formula: Net present value. 1/(1+r)^n NPV of 1 year. 1/(1+0.05)^1 =0.95238…
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: Present value means the discounted value of a future sum of money at a given…
Q: Present Value of an Annuity On January 1, you win $4,600,000 in the state lottery. The $4,600,000…
A: Present value is the current value of a future amount that is to be received or paid out. Future…
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: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity eaming 9.52%…
A: Using excel
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: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…
A: The PMT is the equal pay that has to paid or received monthly or yearly.
Q: Donald Turner invested $4500 twice a year in an annuity due at Capital Appreciation, Inc. for a…
A: Periodic deposit (D) = $4500 n = 7 years = 14 deposits r = 4% per annum = 2% per period
Q: Find the future value of the annuity due. 3) Payments of $2500 made at the beginning of each…
A: Future value of annuity due can be calculated with a payment (P) of $2500 made at the beginning of…
Q: Present Value of an Annuity On January 1, you win $1,600,000 in the state lottery. The $1,600,000…
A: Present Value of an Annuity The amount of money you'd have to invest right now to equal the sum of…
Q: Determine the present value of $250,000 to be received at the end of each of four years, using an…
A: Present value refers to the current worth of an amount that is receivable in the future.
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: An annuity pays $300 each on January 1 in the Year 2025, 2030, 2035, 2040 and 2045. The annual…
A: The sum of all succeeding, equal payments or deposits made at some point in the future represents…
Q: Present Value of an Annuity Determine the present value of $340,000 to be received at the end of…
A: Present value will be calculated with the help of present value of $1 table and present value of an…
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: Present Value of an Annuity On January 1, you win $60,000,000 in the state lottery. The $60,000,000…
A: Present Value of an Annuity The present value of an annuity refers to the current value of future…
Q: A 30-year annuity is arranged to pay off a loan taken out today at a 5% annual effective interest…
A:
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 Determine the present value of $240,000 to be received at the end of…
A: a) Compute the present value using the present value table: Year Amount received Present value…
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: Present value of an annuity On January 1. you win $46,000,000 in the state lottery. The 545,000,000…
A: Here, Sum of Prize is $46,000,000 Annual Payments is $5,750,000 Number of years is 8 Interest Rate…
Q: If $12,000 is deposited annually starting on January 1, 2020 and it earns 9%, how much will…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to…
A: The present value of annuity is given by the following formula : Present value of annuity = Annual…
Q: Present Value of an Annuity On January 1, you win $60,000,000 in the state lottery. The $60,000,000…
A: Present value is the value of the future sum of money or cash flows today as per given rate of…
Q: prepare a three-year (monthly) amortization schedule to classify the notes payable into its current…
A: Company has bought the office equipment for $15,000 but that purchase has been made through the…
Q: You want to borrow $100,000 for five years when the interest rate is 5%. You will make yearly…
A: Given: Interest rate = 5% Loan = 100,000 Cash payment $23,097.48 $23,097.48 $23,097.48…
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: Present Value of an Annuity Determine the present value of $110,000 to be received at the end of…
A: Formula: Present value annuity = Yearly annuity amount x Annuity factor. Multiplying annuity factor…
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 of winnings = Annual amount to be received x Present value of $1 Annuity (7%, 10…
Q: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity earning 8.99%…
A: Interest amount using ordinary annuity can be calculated by subtracting principal by the end of the…
Q: Present Value of an Annuity Determine the present value of $200,000 to be received at the end of…
A: The present value is the worth of cash flows at the present time computed on the basis of a given…
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: 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: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the…
A: Calculation of present values is as follows; a) Year Cash receipts PV factor @ 6% Present value…
Q: Using the appropriate present value table and assuming a 12% annual interest rate, determine the…
A: 1) Annual annuity payment: $5,000 Rate: 12% nper: 5 years The first payment is received on December…
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: Present Value of an Annuity Determine the present value of $120,000 to be received at the end of…
A: ANSWER A) COMPUTATION OF PRESENT VALUE IN EACH 4 YEAR First year $ 114286 Second year $ 108844…
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: Deferred Annuity: An annuity starts at the end of year 3 and runs for 5 years. The payment amount is…
A: The annuity for which payments doesn't start immediately from coming period but after certain…
Present value of an annuity
On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal installments of $7,250,000 over six years. The payments will be made on December 31 of each year, beginning on December 31 of this year. The current interest rate is 5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Determine the present value of your winnings. Round your answer to the nearest dollar.
$ fill in the blank 2
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- Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits?Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
- Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.Determining Loan Repayments Jerry Rockness needs 40,000 to pay off a loan due on December 31, 2028. His plans included the making of 10 annual deposits beginning on December 31, 2019, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of 4,000 each on December 31, 2019, 2020, and 2021, which have been earning interest at 10% compounded annually. Required: What is the equal amount of each of the next 7 deposits for the period December 31, 2022, to December 31, 2028, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
- Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.Present Value of an Annuity Ralph Benke wants to make 8 equal semiannual withdrawals of 8,000 from a fund that will earn interest at 11 % compounded semiannually. Required: How much would Ralph have to invest on: 1. January 1, 2019, if the first withdrawal is made on July 1, 2019 2. July 1, 2019, if the first withdrawal is made on July 1, 2019 3. January 1, 2019, if the first withdrawal is made on January 1, 2022Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
- Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?Discounting of Notes Payable On October 30, 2019, Sanchez Company acquired a piece of machinery and signed a 12-month note for 24,000. The lace value of the note includes the price of the machinery and interest. The note is to be paid in four 6,000 quarterly installments. The value of the machinery is the present value of the four quarterly payments discounted at an annual interest rate of 16%. Required: 1. Prepare all the journal entries required to record the preceding information including the year-end adjusting entry and any payments. Present value techniques should be used. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.Compound Interest Issues You are given the following situations: 1. Thomas Petty owes a debt of 7,000 from the purchase of a boat. The debt bears 12% interest payable annually. Thomas will pay the debt and interest in 5 annual installments beginning in 1 year. Calculate the equal annual installments that will pay off the debt and interest at 12% on the unpaid balance. 2. On January 1, 2019, John Cothran offers to buy Ruth Houses used tractor and equipment for 4,000 payable in 12 equal semiannual installments which are to include payment of 10% interest on the unpaid balance and payment of a portion of the principal with the first installment to be made on January 1, 2019. Calculate the amount of each of these installments. 3. Nadine Love invests in a 60,000 annuity at 12% compounded annually on March 1, 2019. The first of 15 receipts from the annuity is payable to Love on March 1, 2029, 10 years after the annuity is purchased and on the date Love expects to retire. Calculate the amount of each of the 15 equal annual receipts. Required: Using the appropriate tables, solve each of the preceding situations.
