Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
4. The state lottery claims that its grand prize is $1 million. The lucky winner will...
4. The state lottery claims that its grand prize is $1 million. The lucky winner will receive $100,000 upon presentation of the winning ticket plus $100,000 at the end of each year for the next 9 years. Assume a 8% discount rate. a-Why isn't this really a million-dollar prize? b. What would it actually be worth in dollars to you? c. What would the 10 yearly payments need to be for the present value of the lottery to be $1...
16. A lottery claims its grand prize is $10 million, payable over 5 years at $2,000,000 per year. If the first payment 16. A lottery claims its grand prize is $10 million, payable over 5 years at $2,000,000 per year. If the first payment 86 PART 2 Financial Markets is made immediately, what is this grand prize really worth? Use an interest rate of 6%.
A lottery claims its grand prize is %15 million, payable over 5 years at $3,000,000 per year. If the first payment is made immediately, what is the grand prize really worth? Use an interest rate of 4%. The real value of the grand prize is ?
A lottery claims its grand prize is $5 million, payable over 5 years at $1,000,000 per year If the first payment is made immediately, what is the grand prize really worth? Use an interest rate of 8% The real value of the grand prize is (Round your response to the nearest dollar)
A lottery winner claims a prize of $1.2 million, payable over 30 years at $40,000 per year. If the first payment is made immediately, what is this prize really worth given the annual rate of 6.8%?
You are the lucky winner of the Megazillions lottery. Your prize is $600 million . The Lottery Commission has given you a choice: equal annual payments for the next 30 years, or an immediate check for $250 million. Using a 6.5% discount rate, which is the optimal decision from a financial standpoint? (Please show the correct formula)
A local magazine is offering a $5,000 grand prize to one lucky winner. The prize will be paid in five annual payments of $1,000 each, starting one year after the drawing. How much would this prize be worth to you if you can eam 8 percent on your money? 3 otao 30 Multiple Choice o sa B2345 o 54522 вв o $3,99271 o О Азт213 o О 533123
Question 11 (1 point) The winner of a "Fifty-million dollar" lottery prize is actually entitled to payments of $500,000 at the end of every six months for 50 years. The winner can select to receive a single lump sum payment equal to the present value of these payments calculated using a rate of 9.8% compounded semi- annually. What would be the amount of the single payment? $5,101,597 $10,118,727 $20,118,147 $39.453 072
homework help please P(x) For a multistate lottery, the following probability x (cash prize, distribution represents the cash prizes of the lottery Grand prize with their corresponding probabilities. Complete parts 200,000 (a) through (c) below. 10,000 100 0.00000000562|| 0.00000012 0.000001831 10 000156178 0.005556668 0.008631032 0.01493052 0.97072364538 Question Viewer (a) If the grand prize is $13,000,000 find and interpret the expected cash prize. If a ticket costs $1, what is your expected profit from one ticket? The expected cash prize is...
Question 1: A lottery claims that its prize is $3 million. The first $1 million is paid immediately, and the second $1 million payment will be made in 1 year, and the third $1 million payment will be made in 2 years. What is the present value of this prize? Interest rate stays at 5% throughout the whole process.