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10 annual payouts starting today b- How much is the equivalent value of the prize today...
You have just won a lottery prize of $1 000 000 collectible in 10 yearly installments...
You have just won a lottery prize of $1 000 000 collectible in 10 yearly installments of $ 100 000 starting today. Why is this prize not really $ 1 000 000 ? What is it really worth today if money can be invested at 10 percent annual interest, compounded monthly?
2.46 C. More Challenging Problems 2.45 You have just won a lottery prize of $1 000...
2.46
C. More Challenging Problems 2.45 You have just won a lottery prize of $1 000 000 collectable in 10 yearly installments of S100 000 starting today. Why is this prize not really S1 000 0002 What is it really worth today if money can be invested at 10 percent annual interest, compounded monthly? Use a spreadsheet to construct a table showing the present worth of each installment, and the total present worth of the prize. Suppose in Problem 2.45...
Rosie won the lottery today. She can receive 30 annual payments of $5,000,000 starting immediately. (So,...
Rosie won the lottery today. She can receive 30 annual payments of $5,000,000 starting immediately. (So, the last installment will be received 29 years from today.) Alternatively, Rosie can opt to receive her entire winnings all at once today (a lump sum). If Rosie can invest at 6% per year, what minimum lump sum would make her choose to take her winnings at all once today?
NO EXCEL, NO EXCEL You have just won a very special prize, a "consol" bond that...
NO EXCEL, NO EXCEL You have just won a very special prize, a "consol" bond that pays $70,000 every six months (semi-annual payment) forever. The only caveat is that the first payments is given 6.5 years from now. You are not that enthusiastic about waiting that long. In fact, you really want to simply receive 19 quarterly payments with the first payment starting one quarter from now. If the APR is 12% compounded monthly, what is the quarterly payment amount...
You have just won the lottery. The prize is $1.2 million, payable is 20 equal annual...
You have just won the lottery. The prize is $1.2 million, payable is 20 equal annual installments. You received the first installment of $60,000 today, you are so happy to be a millionaire. However, your friend claims you really aren't a millionaire. What is the present worth of your winnings, assuming your MARR is 8%?
question 3 & 4 3. You plan to invest $300 at the beginning of each month, starting on October 1, 2012, and the last investment will be made on September 1, 2014. The payments will be invested...
question 3 & 4
3. You plan to invest $300 at the beginning of each month, starting on October 1, 2012, and the last investment will be made on September 1, 2014. The payments will be invested at 3.0% APR compounded monthly (a)"What is the value of this annuity on October 1, 20147 (b) What is the value of this annuity on October 1, 20127 4. You won the lottery! The jackpot is $120 million. You have the option to...
9. You won the lottery and you are scheduled to receive 30 annual payments of $100,000, starting next year. If your opp...
9. You won the lottery and you are scheduled to receive 30 annual payments of $100,000, starting next year. If your opportunity cost of money is 12% and you asked to receive your prize in cash today as a lump-sum payment, how much would you take home?
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...
How much is the equivalent present value in year 0 for a 5-year annuity, starting at...
How much is the equivalent present value in year 0 for a 5-year annuity, starting at the end of year 1 with $10,000 at end of each year, at an annual interest rate at 8% per year, compounded quarterly? An amortized loan is the arrangement that you pay same amount at the end of each period and you pay off the loan after the last payment. If the beginning amount of a 5-year loan is $10,000, the nominal annual interest...
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...
2.46
C. More Challenging Problems 2.45 You have just won a lottery prize of $1 000 000 collectable in 10 yearly installments of S100 000 starting today. Why is this prize not really S1 000 0002 What is it really worth today if money can be invested at 10 percent annual interest, compounded monthly? Use a spreadsheet to construct a table showing the present worth of each installment, and the total present worth of the prize. Suppose in Problem 2.45...
question 3 & 4
3. You plan to invest $300 at the beginning of each month, starting on October 1, 2012, and the last investment will be made on September 1, 2014. The payments will be invested at 3.0% APR compounded monthly (a)"What is the value of this annuity on October 1, 20147 (b) What is the value of this annuity on October 1, 20127 4. You won the lottery! The jackpot is $120 million. You have the option to...
9. You won the lottery and you are scheduled to receive 30 annual payments of $100,000, starting next year. If your opportunity cost of money is 12% and you asked to receive your prize in cash today as a lump-sum payment, how much would you take home?
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...
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