Using financial calculator
Set mode to BGN
PV=10000000
PMT=-500000
FV=0
N=30
CPT I/Y=3.08%
113) Your girlfriend just won the Power Ball lottery. She has the choice of $10,000,000 today...
Question 21 (4 points) Your significant other just won the Power Ball lottery. S/he has the choice of $10 million today or a 20-year annuity of $700000, with the first payment coming today. What rate of return would make you indifferent between the two alternatives? Your Answer: Answer units
Your best friend just won the Florida lottery. She has the choice of $15.900,000 today or an annuity with payments of $1.050.000 for 20 years, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard any tax consequences. Your answer should be between 2.01 and 14.74, rounded to 2 decimal places, with no special characters. Question 12 5 pts lim sold a car and accepted a note promising cash flows of...
You just won the state lottery. The state gives you the choice of $1,000,000 today or a 20-year annuity of $94,390, with the first payment coming one year from today. What rate of interest is built into the annuity?
Suppose you just won the state lottery, and you have a choice between receiving $2,700,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. Assuming both choices have the same present value, what rate of return is built into the annuity? Disregard taxes.
Suppose you just won the state lottery, and you have a choice between receiving $3,600,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. Select the correct answer. a. 4.16% b. 2.56% c. 2.96% d. 3.36% e. 3.76%
Question 11 5 pts Your best friend just won the Florida lottery. She has the choice of $15,900,000 today or an annuity with payments of $1,700,000 for 20 years, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard any tax consequences. Your answer should be between 2.01 and 14.74, rounded to 2 decimal places, with no special characters. 5 pts Question 12 Jim sold a car and accepted a note...
finance Suppose you just won the state lottery, and you have a choice between receiving $3,500,000 today or a 20- year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. Select the correct answer. a. 5.2796 6.2.07% c. 4.4796 d. 2.87% e 36706
Congratulations, you have just won $10,000,000 in the Power Ball Lottery. However, as is often the custom with lotteries, you have the following choices: Alternative A: taking the entire ten million dollars in one lump sum today Alternative B: receiving $500,000 at the end of the year for each of the next 20 years. Please send your computed answers base on both alternatives to me along with your reasoning why you choose either alternative A or alternative B. If the...
You have just won the initial School of Finance lottery! You have won $10,000 today, $20,000 four years from today, and $30,000 six years from today. As an alternative, you can receive your winnings as a 10-year annuity with the first payment received ten years from today. If you require a 6% return on your investment, how much must the annuity pay you each year for you to select that option?
Your friend just won the lottery. He has a choice of receiving $122,788 a year for the next 18 years or a lump sum today. The lottery uses a 8% discount rate. What would be the lump sum your friend would receive?