Present value of an annuityOn January 1 you win $50,000,000 in the state lottery. The $50,000,000 prize will bepaid in equal installments of $6,250,000 over eight years. The payments will be madeon December 31 of each year, beginning on December 31 of this year. If the currentinterest rate is 5%, determine the present value of your winnings. Use the presentvalue tables in Appendix A.

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: 1) If P175,000 is due on November 25,2019, find the proceeds on August 15, 2020, if the discount…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: How much money was deposited semiannually for the past 15 years if it is now sufficient to generate…

A: The future value of the amount deposited must be equal to the present value of the perpetuity.…

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: 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: Determine the present value and total amount of an annuity with 6 payments of P120,000 each made at…

A: Annual payment (P) = P120,000 Interest rate (r) = 15% Number of annual payments (n) = 6

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

A: Annual deposit = X Interest rate (i) = 10%

Q: A lottery pays the winner $1 million in 20 equal annual payments of $50,000. The first payment will…

A: Working note:

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: 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: Consider the O&M costs on a piece of equipment until the end of the eighth year. You purchased a…

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an…

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: 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: If money is worth 1.07%, determine the present value of perpetuity of P 4.489 pavable annually, with…

A: Inputs Interest Rate = 1.07% Perpetual Amount = 4489 Payments will start at end of 5 years

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: Determine the present value of your winnings.

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

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: 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: 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: 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: Dind the future value of $12,308 deposited at 10% compunded quarterly for 3 years. Round your answer…

A: Given that, Present Value (PV)=$12,308 Duration(n)=3*4=12 periods Rate of interest(i)=10%/4=2.5% or…

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: 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: 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: Mateo deposits $5,000 at the end of years 2, 4 and 6. If interest is 8.2% compounded annually,…

A: Amount of deposits made is $5,000 Interest rate is 8.2% Compounded annually Total number of deposits…

Q: Find the future value (in dollars) of the investment. (Round your answer to the nearest cent.)…

A: The answer is as fallows

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: 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: 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…