The payment in six years will be $ (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)
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- You are the lucky winner of the Ohio Lottery ! Congratulations. The Lottery tells you that you have won a $20,000,000 prize that will be paid in annual installments of $1,000,000 for 20 years. If interest rates on alternative investments in the market are 8%, what is the actual value (PV) of your prize? Round to the nearest 1,000, and show your work.You just won a $625,000 lottery prize! You will receive $25,000 per year for the next 25 years, starting today, a total of $625,000. If the current interest rate is 1.9% compounded annually, what is the cash value of this prize?Assume you win a lottery, and you are offered the following stream of payments by the lottery commission: $25,000 today, $32,000 one year from now, another $32,000 two years from now, and a final payment of $55,000 three years from now. You accept the offer. If you invest all of these proceeds at 6% compounded annually and extract nothing from the investment, how much will you have at the end of the fourth year?
- Assume you win a lottery, and you are offered the following stream of payments by the lottery commission: $25,000 today, $32,000 one year from now, another $32,000 two years from now, and a final payment of $55,000 three years from now. You accept the offer. If you invest all of these proceeds at 6% compounded annually and extract nothing from the investment, how much will you have at the end of the fourth year? Excel Formula PleaseYou have just won 50 million in the lottery, payable in equal yearly installments over the next 20 years (first payment to be made immediately). Instead of taking the annual payments, you also have the option of receiving a lump sum amount immediately. If the interest rate is 6% per year, what is the minimum lump sum amount you would except in place for the payments? What if the interest rate is 10% per year? Please show the formula and answer.You have just won a large lottery prize. The Lottery Company says the prize will be paid to you in 8 instalments of $70000, with the first payment occurring today (beginning of year 1), and subsequent payments occurring at the beginning of each year. If the typical market interest rates suggest that you can invest money and earn an interest rate of 9%, compounded annually, then how much is the lottery actually worth today? The solution, please. The correct answer is 422307.
- To give you a start, here is something you can compute and discuss among yourselves: Play-2-Win is the latest lottery game in your country, and you happen to be the latest winner of $10.5 million. Your government has a guarantee on the funds and will not be paid before 3 years from today. You can however sell your claim today at a rate of 8 percent for a lump sum cash payment. What is the least amount you will sell your claim? Beginning this year, Mary is planning to save $800 each year for the next six years to take a vacation to commemorate the seventh year of her career. Assuming the interest rate offered by her bank is 9 percent annually, how much will Mary have in the account at the end of seven years? If Mary increases her savings to $1,500 annually, will this be enough to take care of her vacation which is estimated to cost $15,000. Suggested Answers that you should arrive at after computing and discussing. Give the questions a try when you are ready. Question 1:…The prize in last week’s lottery was estimated to be worth $90 million. If you were lucky enough to win, the payment will be $3.6 million per year over the next 25 years. Assume that the first installment is received immediately. If interest rates are 6%, what is the present value of the prize? If interest rates are 6%, what is the future value after 25 years? How would your answers change if the payments were received at the end of each year? How would your answers change if the interest rate was higher?Alicia is considering two offers-to-purchase that she has received on a residential building lot she wishes to sell. One is a cash offer of $145,000. The other offer consists of three payments of $49,000-one now, one in six months, and one in twelve months. Which offer has the larger economic value if Alicia can earn 4.4% compounded quarterly on low-risk investments? How much more (in current dollars) is the better offer worth?
- You have won a state lottery prize quoted as “$12 million dollar lottery”, what this really mean is that if you take the monthly payments of $50,000 for 20 years, you will have a total payout of $12 million. If the appropriate interest (discount) rate is 6.6% APR, what would be the cash payout on this lottery today?Sima has won the Wisconsin lottery with a jackpot of $10,000,000. She will be paid out in 20 equal annual installments with the first payment made immediately. If she had the money now she could invest it in an account that generates 9% compounded annually. What is the present value of the stream of payments? Present value of the lottery winnings (round up to the nearest dollar):you have just won the lottery and will receive $460,000 in one year. you will receive payments for 21 years, and the payments will increase 4 percent per year. if the appropriate discount rate is 11 percent, what is the present value of your winnings? Please explain how to solve using the financial calculator to show and explain steps thanks