Find the cash value of the lottery jackpot given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rate. $19,000,000 jackpot, 7% interest, 20 annual payments Jackpot Amount Interest Rate Equal Annual Payments Present Value (in dollars) $19,000,000 7% 20 $ 10,768,815 (Round to the nearest dollar as needed.)

Find the cash value of the lottery jackpot given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rate. $19,000,000 jackpot, 7% interest, 20 annual payments Jackpot Amount Interest Rate Equal Annual Payments Present Value (in dollars) $19,000,000 7% 20 $ 10,768,815 (Round to the nearest dollar as needed.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Explain why there is a difference between the present value of the Strayer lottery jackpot and the future value of the twenty-six annual payments based on your calculations and the information provided. First installment is received immediately and remaining over 26-1= 25 Present Value of periodic payment= P* (1- (1+r) ^-n)/r = 423,076.923*(1-(1+0.093807)-25)/0.094 = 4,030,716.32 And the total present value, after adding the first installment, Total Present value = 423,076.923+4,030,716.32 = 4,453,793.24 The Present value of the payments is $4,453,793.24
The present value of a lottery prize of $1 million paid at the end of each year for 20 years discounted at a 10% annual rate of interest is a. $148,643.63 b. $20 million c. $8,513,563.7 d. $18,274,999 Text please so I can copy
16 - What is the cash value of the 120.000 TL receivables with a maturity of 20.04.2020, held by the enterprise as of the end of the period (31.12.2019), over 14% discount rate ? (Ignore fractions!) a) 113,432 TL B) 112,434 TL NS) 116,735 TL D) 117,117 TL TO) 115,568 TL
12. What is the future value in 180 days of $200,000 deposited now at 9% p.a. simple interest? Select one: a. $191,500.52 b. $209,000.00 c. $218,000.00 d. $208,876.71
On January 1 you win $3,480,000 in the state lottery. The $3,480,000 prize will be paid in equal installments of $290,000 over 12 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 7%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.
On January 1 you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 12%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. Will the present value of your winnings using an interest rate of 12% be more than the present value of your winnings using an interest rate of 5%?
fin320 (Related to Checkpoint 6.2) (Present value of annuity payments) The state lottery's million-dollar payout provides for $1.3 million to be paid in 20 installments of $65,000 per payment. The first $65,000 payment is made immediately, and the 19 remaining $65,000 payments occur at the end of each of the next 19years. If 7 percent is the discount rate, what is the present value of this stream of cash flows? If 14 percent is the discount rate, what is the present value of the cash flows? a. If 7percent is the discount rate, the present value of the annuity due is $ (Round to the nearest cent.) b.If 14 percent is the discount rate, the present value of the annuity due is $ (Round to the nearest cent.)
13–22. Jeff Associates needs to repay $30,000. The company plans to set up a sinking fund that will repay the loan at the end of 8 years. Assume a 12% interest rate compounded semiannually. What must Jeff pay into the fund each period of time? PROVIDE THE FOLLOWING FOR EACH PROBLEM N= I= PV= PMT= FV= C/Y= P/Y =
1. An amount of 5 million is placed on deposit from 17 August to 31 December at 6.7%. What would be the interest earned if the rate had been quoted on an ACT/365, ACT/360 or 30/360 basis? 2. A dealer quotes a rate of 6.7% on a 30/360 basis for an investment from 17 August to 31 December. What would be the equivalent rate if the customer asked him to quote it instead on an ACT/365 basis? 3. What is the present value of a cashflow of EUR 5,327.21 arising in 276 days, using 4.2% as the rate of discount?
13. You win a lottery that will pay you $120,000 per month for 12 months, starting 1 month from now. What is the value of the lottery now if your interest rate is 5.5% p.a. compounded monthly? $1,398,002.04 $1,034,222.14 $1,401,746.64 $1,396,508.24
A certain commodity can be bought in cash for $ 200,000.00. However, the agent allows to purchase the commodity in 9 equal payments, the first being due at the end of 10 year with an interest of 7.50% compounded continuously. a) Find the annual payments b) detemine the compound amount factor of the uniform payment series and the sinking fund factor.
Q19 Compute the present value of an $1,450 payment made in 10 years when the discount rate is 12 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.) PRESENT VALUE?

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