You just won the lottery. You and your heirs will receive $40,000 per year forever, beginning 10 years from now. What is the present value of your winnings at a 7% discount rate

Q: You just received $333,000 from an insurance settlement. You have decided to set this money aside…

A: given, pv =$333,000 n= 27 years n= 8.99%

Q: A rich aunt has promised you 6000 one year from today. In​ addition, each year after​ that, she has…

A: This question can solved on the basis on Net Present Value Method (NPV)

Q: You have just received notification that you have won the $1 million first prize in the Centennial…

A: Present Value is the current value of a sum of money after a specified time span provided a fixed…

Q: You have just received notification that you have won the $1.5 million first prize in the Centennial…

A: Computation:

Q: Ms. Cruz can buy a piece of property for ₱6,500,000 cash or ₱4,000,000 down payment and ₱4,200,000…

A: In this question, we have to analyze the two option of buying the property one is cash basis and…

Q: You turned 20 today and you want to retire on your 65th birthday. Starting with the day of your…

A:

Q: Congratulations! You have just won a $40 million lottery and have electedto receive $2 million per…

A:

Q: You have just won the lottery and will receive $550,000 in one year. You will receive payments for…

A: Receipt in year 1 = $ 550,000 Annual growth rate = 3% Discount rate = 10%

Q: You will receive a ​$80,000 inheritance in 5 years. You could invest that money today at 7​%…

A: Future value = Present value ( 1 + Rate of interest ) TIme

Q: You are willing to pay $31,250 now to purchase a perpetuity that will pay you and your heirs $2,500…

A: Perpetuity refers to the future cash flow that occurs forever.

Q: Please show excel formulas.

A: According to the time value of money, the value of money obtained today is greater than the value of…

Q: You can receive lottery winnings of either $800,000 now or $100,000 per year for the next 10 years.…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: As a result of winning the Gates Energy Innovation​ Award, you are awarded a growing perpetuity. The…

A: In the financial system, perpetuity refers to a situation in which a stream of cash flow payments…

Q: You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for…

A: The present value of the growing annuity is the current worth of a cash flow series growing at a…

Q: A rich aunt has promised you $3,000 one year from today. In addition, each year after that, she has…

A: Present value of the can be found by multiplying each cash flow with its present value factor. The…

Q: Suppose you just won the state lottery, and you have a choice between receiving $2,455,000 today or…

A: Given, Today's value (PV) = $2,455,000 Annuity years (Nper) = 20 Yearly payment (Pmt) = $230,000

Q: You just won a $625,000 lottery prize!  You will receive $25,000 per year for the next 25 years,…

A: Using present value of annuity due formulae, PV of annuity due = PMT * [1-(1/(1+r)^n)/r] * (1+r)

Q: Assume that you just won the state lottery. Your prize can be taken either in the form of 100,000 at…

A: Series of payment made at equal interval is called Annuity.

Q: A rich aunt has promised you $4,000 one year from today. In addition, each year after that, she has…

A: Payment after one year = $ 4,000 Annual growth rate in payments = 3% Number of payments = 20…

Q: You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Assume that Social Security promises you $40,000 per year starting when you retire 45 years from…

A: Social security is the amount which is given by certain employers in addition to salary that gets…

Q: How much would you accept in a lump sum today, in place of a lottery payment of $35,000 at the end…

A: Formula:

Q: You have just inherited $100,000 as a lump-sum amount from your distant aunt. After depositing the…

A: In order to find the number of years taken to withdraw the amount one can use excel and in excel…

Q: You have received $200,000 from the PowerBall Lottery and want to have half that amount available…

A: Total lottary amount = $200,000 Amount required at retirement (FV) = $200,000/2 = $100,000 Interest…

Q: A lottery winner will receive $1 million at the end of each of the next ten years. What is the…

A: Amount to be received at the end of year (A) = $1 million n = 10 years r = 8.5% We need to find the…

Q: If you are offered 300,000 in 13 years and you can earn 11% on your money what is the present value…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A lottery winner will receive $1 million at the end of each of the next twelve years. What is the…

A: The question gives the following information:

Q: Your best friend won the state lottery and has offered to give you 500,000 in seven years, after he…

A: Present value of an investment is the trading price at which investment is available to the…

Q: You have just won 50 million in the lottery, payable in equal yearly installments over the next 20…

A: To calculate the minimum lump sum amount needed, we have to use present value of money concept.…

Q: You have just received notification that you have won the $1 million first prize in the Centennial…

A: Present Value is the current value of a sum of money after a specified time span provided a fixed…

Q: You have just received notification that you have won the $3 million first prize in the Centennial…

A: Future Value is $3 million Time Period us 63 years Discount rate is 10% Formula to be used is:-…

Q: If you receive an inheritance of $10,000 today, how long do you have to invest it at 8% per year to…

A: Given information: Present Value = $10,000 Interest Rate = 8% Annuity Payouts = $2,000

Q: you have just received notification that you have won the 1 million first prize in the centennial…

A: given, FV = $1000,000 R=8.45% N=80

Q: You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You purchased a house for 850,000 cash 4 years ago. You can sell it today for 980,000. What rate of…

A: Rate of return is the percentage of income earned from an investment.

Q: Kevin won a lottery that will pay him $620000 at the end of each of the next twenty years. Assuming…

A: Present value of annuity = Annuity[1-(1+interest rate)^-time period]/rate

Q: You just won the lottery, which promises you $440,000 per year for the next 20 years. You receive…

A: Given data; Payment amount = $440,000 number of payments = 20 discount rate = 9% annuity due

Q: You win a lottery payout of $10,000 a year for the next 30 years. If your investment rate is 8…

A: Present Value:  The present value (PV) is the present sum of a series of fixed payments. The series…