Present Value of an Annuity On January 1, you win $4,800,000 in the state lottery. The $4,800,000 prize will be paid in equal installments of $480,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 7%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.

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 deposit of 120 000.00 Php is placed into a college fund at the beginning of every month for 10…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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: You take out a loan in the amount of $271,000 with annual equal repayments over the next 20 years.…

A: Annual Payment = P / ((1-(1+r)-n)/r) Where P = Principal Amount  r = Rate of interest n = Numbers…

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 $4,600,000 in the state lottery. The $4,600,000…

A: Present value is the current value of a future amount that is to be received or paid out. Future…

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: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The PMT is the equal pay that has to paid or received monthly or yearly.

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

A: Working note:

Q: Mark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for…

A: using excel Goal seek to find out the fixed amount

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: Determine the value at the end of five years of a $7,000 investment (today) in a bank certificate of…

A: Future Value = Present Value * (1+rate)^n Where, Rate = 9%/2 = 0.045 n = no. of compounding period =…

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: An annuity pays $300 each on January 1 in the Year 2025, 2030, 2035, 2040 and 2045. The annual…

A: The sum of all succeeding, equal payments or deposits made at some point in the future represents…

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 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: Calculate the future value of an annuity of $ 10,440 invested every year at 10.9% compounded…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

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: An annuity provides for 30 annual payments. The first payment of $100 is made immediately and the…

A: Present value of growing annuity is the stream of cash flows that keeps growing at a specified rate…

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: Engineering Economics (Annuity) An ordinary annuity paying P1,811 at the end of each year for 15…

A: The question is based on the concept of future value calculation for annuity payment. Formula as :…

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: An annuity pays 8 at the end of each year for five years, starting at the end of the 12th year.…

A: Annual payment (P) = 8 Number of payments (N) = 5 Interest rate (R) = 7%

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: 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: A company offer annual payments of $1675 at the end of each year for the next FIVE years. a) What…

A: Annuity is a concept of regular equal payments made at equal interval of time. It is used to…

Q: Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $81,000…

A: To determine the monthly interest on the annuity: Lump sum payment = $81,000 Annuity = $625 Period =…

Q: Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

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…

Q: What is the present value of a 9-year annuity of $4,000 per period in which payments come at the…

A: Present value is a concept which states that amount of money today is worth more than the amount to…

Q: Determine the present value of $320,000 to be received at the end of each of four years, using an…

A: Given information: Annual amount is $320,000 Interest rate is 6% Number of years is 4