Often lottery winnings are divided into equal payments given annually for 20 - 25 years. So the present value of the winnings is worth less than the actual jackpot, depending on the rate at which money could be invested. Find the present value in dollars using the given conditions. Complete the table for each amount, interest rate, and number of payments. Jackpot Amount Interest Rate Equal Annual Payments Present Value (in dollars) $12,000,000 5% 20 $12,000,000 10% 20 $12,000,000 5% 25 $12,000,000 10% 25 (Round to the nearest dollar as needed.)
Often lottery winnings are divided into equal payments given annually for 20 - 25 years. So the present value of the winnings is worth less than the actual jackpot, depending on the rate at which money could be invested. Find the present value in dollars using the given conditions. Complete the table for each amount, interest rate, and number of payments. Jackpot Amount Interest Rate Equal Annual Payments Present Value (in dollars) $12,000,000 5% 20 $12,000,000 10% 20 $12,000,000 5% 25 $12,000,000 10% 25 (Round to the nearest dollar as needed.)
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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Transcribed Image Text:Often lottery winnings are divided into equal payments given annually for 20 - 25 years. So the present value of the winnings is worth less than the actual jackpot, depending on the rate at
which money could be invested. Find the present value in dollars using the given conditions.
Complete the table for each amount, interest rate, and number of payments
Equal Annual Payments Present Value (in dollars)
Jackpot Amount
$12,000,000
Interest Rate
5%
20
$12,000,000
10%
20
%$4
$12,000,000
5%
25
%24
$12,000,000
10%
25
(Round to the nearest dollar as needed.)
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