menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal installments of $6,000,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use the present value tables in Appendix A.

BuyFindarrow_forward

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124

Solutions

Chapter
Section
BuyFindarrow_forward

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124
Chapter 14, Problem 19E
Textbook Problem
348 views

On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal installments of $6,000,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use the present value tables in Appendix A.

To determine

Calculate the present value of winnings.

Explanation of Solution

Present Value: The value of today’s amount expected to be paid or received in the future at a compound interest rate is called as present value.

Calculate the present value of winnings.

Present value=(Future amount×Present value of annuity of $1

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 14 Solutions

Financial Accounting
Show all chapter solutions
add
Ch. 14 - Frey Co. is considering the following alternative...Ch. 14 - Brower Co. is considering the following...Ch. 14 - On January 1, the first day of the fiscal year, a...Ch. 14 - On January 1, the first day of the fiscal year, a...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - Using the bond from Practice Exercise 14-3A,...Ch. 14 - Using the bond from Practice Exercise 14-3B,...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - Using the bond from Practice Exercise 14-5A,...Ch. 14 - Using the bond from Practice Exercise 14-5B,...Ch. 14 - A 1,500,000 bond issue on which there is an...Ch. 14 - A 1,200,000 bond issue on which there is an...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - Berry Company reported the following on the...Ch. 14 - Averill Products Inc. reported the following on...Ch. 14 - Domanico Co., which produces and sells biking...Ch. 14 - Based on the data in Exercise 14-1, what factors...Ch. 14 - The financial statements for Nike, Inc., are...Ch. 14 - Stone Energy Corporations 7.5% bonds due in 2022...Ch. 14 - Thomson Co. produces and distributes...Ch. 14 - On the first day of its fiscal year, Chin Company...Ch. 14 - Smiley Corporation wholesales repair products to...Ch. 14 - Adele Corp., a wholesaler of music equipment,...Ch. 14 - Emil Corp. produces and sells wind-energy-driven...Ch. 14 - On the first day of the fiscal year, Shiller...Ch. 14 - On January 1, Year 1, Luzak Company issued a...Ch. 14 - On January 1, Year 1, Bryson Company obtained a...Ch. 14 - At the beginning of the current year, two bond...Ch. 14 - The following data were taken from recent annual...Ch. 14 - Loomis, Inc. reported the following on the...Ch. 14 - Iacouva Company reported the following on the...Ch. 14 - Tommy John is going to receive 1,000,000 in three...Ch. 14 - Determine the present value of 200,000 to be...Ch. 14 - On January 1, you win 60,000,000 in the state...Ch. 14 - Assume the same data as in Exercise 14-19, except...Ch. 14 - Pinder Co. produces and sells high-quality video...Ch. 14 - Moss Co. issued 42,000,000 of five-year, 11%...Ch. 14 - On the first day of its fiscal year, Ebert Company...Ch. 14 - Shunda Corporation wholesales parts to appliance...Ch. 14 - Ware Co. produces and sells motorcycle parts. On...Ch. 14 - Boyd Co. produces and sells aviation equipment. On...Ch. 14 - Three different plans for financing an 18,000,000...Ch. 14 - On July 1, Year 1, Danzer Industries Inc. issued...Ch. 14 - Campbell Inc. produces and sells outdoor...Ch. 14 - The following transactions were completed by...Ch. 14 - On July 1, Year 1, Danzer Industries Inc. issued...Ch. 14 - Campbell, Inc. produces and sells outdoor...Ch. 14 - Three different plans for financing an 80,000,000...Ch. 14 - On July 1, Year 1, Livingston Corporation, a...Ch. 14 - Rodgers Corporation produces and sells football...Ch. 14 - The following transactions were completed by...Ch. 14 - On July 1, Year 1, Livingston Corporation, a...Ch. 14 - Rodgers Corporation produces and sells football...Ch. 14 - CEG Capital Inc. is a large holding company that...Ch. 14 - Nordbock Inc. reports the following outstanding...Ch. 14 - Alex Kelton recently won the jackpot in the...Ch. 14 - Xentec Inc. has decided to expand its operations...Ch. 14 - You hold a 25% common stock interest in YouOwnIt,...Ch. 14 - The following financial data (in thousands) were...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
What are some differences in the analysis for a replacement project versus that for a new expansion project?

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

What does the invisible hand of the marketplace do?

Brief Principles of Macroeconomics (MindTap Course List)

Use a production possibilities frontier to describe the idea of efficiency.

Principles of Macroeconomics (MindTap Course List)

INFLATION AND INTEREST RATES In late 1980, the U.S. Commerce Department released new data showing inflation was...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)