You have won $1,000,000 in a lottery. Your winnings will be paid to you in equal annualyear-end installments of $50,000 over 20 years. You estimate that you can earn 5% on yourinvestments. The present value of your $1,000,000 winnings would be closest toa. $377,000.b. $623,100.c. $1,000,000.d. $1,050,000.

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: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: An annuity is a type of financial product offered by insurance companies and financial institutions.…

Q: You purchase a TIP note with an original principal amount of $1,000,000 and a 10 percent annual coun…

A: Original Principal Amount $1,000,000  Coupon Rate = 10% Inflation rate = 3%

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: 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: 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: You've received a $100,000 education grant and want to deposit the lump sum and withdraw an equal…

A: Note: I am supposed to provide the solution of first three subparts. Please repost the remaing sub…

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: This exercise compares the future value of investing an amount of money in different time frames. A…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

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

A: Working note:

Q: Thrifty Industries borrowed $150,000 amortized over 10 years at a rate of j12-4.8% with monthly…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: Five years from today, you plan to invest $5,050 for 7 additional years at 7.9 percent compounded…

A: The worth of a present asset at a future date based on an estimated rate of growth is known as…

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: Your client has systematically invested $1000 at the end of each half-year for the past 17 years.…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

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: 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: On 1 January 2019 the total present value of all the investments is R75,998.34. If the interest rate…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

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: For a certain multi-state lottery the prize was $14,200,000 that was paid out over 20 years with…

A: Given information: Total prize money of lottery is $14,200,000 Number of years is 20 years Equal…

Q: At the beginning of each year for 14 years, Sherry Kardell invested $400 that earns 10% annually.…

A: Given:

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 annuityOn January 1 you win $50,000,000 in the state lottery. The $50,000,000…

A: The present value of an annuity represents the present worth of the money to be received in the…

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: A Sarm is offered for sale for $22,500 cash or $ 7,500 cash and seguence payments of $ 4000 each the…

A: Purchase agreement is a formal document mentioning two parties buyer and the seller of the contract…

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: You plan to make a trip that costs you approximately ¢ 4,000,000.00, for this you deposit today in…

A: So required investment will be accumulated in 8 years

Q: You won the lottery today and immediately deposit your funds into an investment account that earns…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: businessman invested P1,000.00 and after 4 years, it becomes P1,608.44 when he invested at a certain…

A: Future Value = Present value * (1+r)^n Where r = bimonthly rate n= no. of compounding period i.e. 4…

Q: has been bought by an individual. -annually, eight times a year for 1 payment. If the payment is to…

A: In this we have to calculate the interest rate for period and find out future value.

Q: A state lottery commission pays the winner of the "Million Dollar" lottery 20 annual installments of…

A: Given:

Q: Maria is considering purchase of a new machine. The purchase price of the machine is $12,000.  The…

A: Price of Machine =$12,000 Interest rate (r) = 15%/4 = 3.75 % per quarter Years =4 Terms(n) = 4*4 =16…

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: A lottery offers a prize of $750 every week for 5 years. The first payment will be made one week…

A: Given data, annuity Payments A= $750 i = interest rate = 4.4% m = compounding frequency = weekly =…

Q: Aaron contributed $2100 to his RRSP at the end of every half-year. What was the value of his RRSP…

A: The worth of a present commodity at a date in the future predicated on an estimated rate of growth…

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: Your grandfather deposits $50,000 into your savings account that pays 6% interest compounded…

A: To solve the question, we first need to determine the effective annual rate of interest. This is…

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: JRT Publishers invests P100,000 today to be repaid in five years in one lump sum at 12% compounded…

A: Time value of money is a concept which states that the value of one unit of currency in today's time…

Q: f you owe $47,000 payable at the end of five years, what amount should your creditor accept in…

A: The question gives the following information:

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: alculate the future value in six years of $8,000 received today if your investme termediate…

A: Future value includes the compounding interest rate that grow with time and interest rate.

Q: --- ...I.I MY NOTES ASK YOUR TEACHER A state lottery commission pays the winner of the Million…

A: Present Value or Present Worth is the current value of a future cash inflow considering the time…

Q: A lottery offers a $1,000,000 prize to be paid in 29 equal annual installments of $20,000 with a…

A: Ordinary Annuity = A= P[(1+r/n)nt-1 /(r/n)   A= Future Value P= Periodic payment N=No. of Payment…