Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume...
Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates.
Jackpot Amount Interest Rate (%) Equal
Annual Payments present value (in dollars
1,000,000 7 % 20 ------------pv
1,000,000 12% 20 ---------------pv
1,000,000 7% 25 -------------------pv
1,000,000 12% 25 ----------------------pv
Round to the nearest dollar as needed
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Find the cash value of the lottery jackpots given below. Yearly
jackpot payments begin immediately. Assume...
Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume...
Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates. Jackpot Amount Interest Rate (%) Equal Annual Payments present value (in dollars 1,000,000 7 % 20 ------------ 1,000,000 12% 20 ---------------- 1,000,000 7% 25 ------------------- 1,000,000 12% 25 ---------------------- Round to the nearest dollar as needed
Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume...
Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates Jackpot Amount Interest Rate (%) Equal Annual Payments 14,000,000 6 20 14,000,000 13 20 14,000,000 6 25 14,000,000 13 25
Often lottery winnings are divided into equal payments given annually for 20 - 25 years. So...
Often lottery winnings are divided into equal payments given annually for 20 - 25 years. So the present value of the winnings is worth less than the actual jackpot, depending on the rate at which money could be invested. Find the present value in dollars using the given conditions. Jackpot Amount Interest Rate Equal Annual Payments Present Value (in dollars) $6000000 6% $6000000 10% $6000000 6% $6000000 10% (Round to the nearest dollar as needed.)
You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in four equal annual payments....
You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in four equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won _________- assuming an annual interest of 6.50%.
A. You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in...
A. You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments beginning immediately. If you had the money now, you could invest it in an account with a quoted annual interest rate of 9% with monthly compounding of interest. What is the present value of the payments you will receive? B. In your own words and using various bond websites, please locate one of each of the following bond ratings: AAA,...
7. Present value of annuities and annuity payments Aa Aa The present value of an annuity...
7. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six mońths O An annuity that pays $1,000 at the...
You won a lottery that will make equal payments of $1,000 at the end of each...
You won a lottery that will make equal payments of $1,000 at the end of each year for the next five years. If the annual interest rate stays constant at 5%, what is the value of these payments in today's dollars? (Note: Round your answer to the nearest whole dollar.) $3,681 O $4,330 O $5,413 O $4,547 You found out that now you are going to receive payments of $7,500 for the next 15 years. You will receive these payments...
9. Present value of annuities and annuity payments Aa Aa The present value of an annuity...
9. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the beginning of every six months O An annuity that pays $500 at the...
8) Lottery prizes are often not "worth" as much as claimed. What is the present value...
8) Lottery prizes are often not "worth" as much as claimed. What is the present value of a prize of $5,000,000 that is to be received in 20 equal yearly instalments, with the first payment beginning today? Assume an interest rate of 7% (The equal yearly payments will be equal to 5,000,000/20, in case the question was not clear. Also don't forget BGN mode) Explain your work
Often lottery winnings are divided into equal payments given annually for 20 - 25 years. So the present value of the winnings is worth less than the actual jackpot, depending on the rate at which money could be invested. Find the present value in dollars using the given conditions. Jackpot Amount Interest Rate Equal Annual Payments Present Value (in dollars) $6000000 6% $6000000 10% $6000000 6% $6000000 10% (Round to the nearest dollar as needed.)
7. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six mońths O An annuity that pays $1,000 at the...
You won a lottery that will make equal payments of $1,000 at the end of each year for the next five years. If the annual interest rate stays constant at 5%, what is the value of these payments in today's dollars? (Note: Round your answer to the nearest whole dollar.) $3,681 O $4,330 O $5,413 O $4,547 You found out that now you are going to receive payments of $7,500 for the next 15 years. You will receive these payments...
9. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the beginning of every six months O An annuity that pays $500 at the...
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