Jake won $350,000 in the lottery! He will receive $35,000 each year at the beginning of each of the discounted rate of 5%, what is the present value of the lottery winnings? $0.00 ANSWER Number of Years Number of Periods/Year Number of Periods Annual Interest Rate Interest Rate/Period Payment Future Value Type (0=END; 1=BEG) Present Value
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- Assume you have just found out you are entitled to receive $102,000 in 19 years. If the interest rate is 18 percent, what should you be willing to take today in exchange for the future payment? (Enter your answer as a positive number rounded to 2 decimal places.)Winners of the PowerState Lottery can take $30 million now or payments of $2.5 million per year for the next 15 years. These are equivalent at what annual interest rate? The answer is closest to what value? (a) 1% (b) 2% (c) 3% (d) 5%The winner of a lottery is given a choice of $1,000,000 cash today or $2,000,000 paid out as follows: $100,000 cash per year for 20 years with the first payment today and 19 subsequent annual payments thereafter. The inflation rate is expected to be constant at 4%/yr over the award period and the winner’s TVOM (real interest rate) is 3.5%/yr. Solve, a. Which choice is better for the winner? Neglect the effect of taxes, life span, and uncertainty. b. At what value of inflation are the two choices economically equivalent? c. What would you do if you do NOT neglect the effect of life span and uncertainty?
- 1. Calculate the future value of $500 deposited today at a fixed rate of interest equal to 3.5% per year and left alone for: (Show the formula used to calculate the answers!) a. 5 years b. 10 years c. 15 years d. 20 yearsAn individual wins a lottery prize of £3,000 payable every 6 months in arrears for 10 years. What is the present value of the cashflow at an effective interest rate of 3.5% per annum? Select one: a. £50,203.2 b. £50,332.5 c. £51,335.2 d. E53,532.3Congratulations! You have just won a $40 million lottery and have elected to receive $2 million per year for 20 years. Assume a 4% interest rate is used to evaluate the annuity and that you receive each payment at the beginning of each year. a. What is the present value of the lottery? b. How much interest is earned on the percent value to make $2 million per-year payment?
- if you invest $1,000 today With a compound annual interest rate of 5 %. What is the total amount accumulated after three years? Select one: n O a. 1000 Ob. 1110 O c. 1100 O d. 1157.6 Next page age ENG 07:11 INT 11/07/2021You are calculating the present value of $1,000 that you will receive five years from now.Which table will you use to obtain the present value factor to multiply to calculate thepresent value of that $1,000?a. Present Value of $1 tableb. Future Value of $1 tablec. Present Value of Ordinary Annuity of $1d. Future Value of Ordinary Annuity of $1What's the future value of $15,000 after 11 years if the appropriate interest rate is 10.75%, compounded annually?Round your answer to two decimal places. For example, if your answer is $345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box provided. A. $54,419.48 B. $53,497.11 C. $38,278.11 D. $42,889.93 E. $46,118.20
- What's the future value of $20,000 after 8 years if the appropriate interest rate is 5.75%, compounded annually?Round your answer to two decimal places. For example, if your answer is $345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box provided. Group of answer choicesWhat interest rate (the nearest percent) must Charlie earn on a $616000 investment today so that he will have $1170000 after 11 years? A.)4%. B.)7%. C.)6%. D.)5%.Compute the present value of an annuity of $621 per year for 25 years, given a discount rate of 6 percent per annum. Assume that the first cash flow will occur one year from today (that is, at t = 1). Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Your Answer: Answer