Accounting question
Gary won a lottery that will pay him $700000 at the end of each of the next twenty years. Blue Spruce has offered to purchase the payment stream for $7413000. What interest rate (to the nearest percent) was used to determine the amount of the payment?
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You have just won $20,000 in the state lottery, which promises to pay you $1,000 (tax...
You have just won $20,000 in the state lottery, which promises to pay you $1,000 (tax free) every year for the next twenty years. The interest rate is 5%. In reality, you receive the first payment of $1,000 today, which is worth today. (Round your response to the nearest penny) The value of the second $1,000 payment is worth Stoday (Round your response to the nearest penny) Your total lottery winnings are actually worth $20,000 to you today
You have just won the Multi-State Lottery. You have the option of receiving a check for...
You have just won the Multi-State Lottery. You have the option of receiving a check for $40,000,000 every year at the end of the next 23 years. The lottery commission also allows you the option of receiving a one-time payment of $414,842,358 when you turn in the winning ticket. What is the approximate interest rate that the lottery commission is using to determine the one-time payment? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round...
Congratulations! You have just won the Lottery. The Lottery Commission informs you that you can choose...
Congratulations! You have just won the Lottery. The Lottery Commission informs you that you can choose between three different pay out options: (1) $500,000 cash payment today, (2) $50,000 cash payments at the end of each year for twenty years, or (3) $1,000,000 in cash in one payment after 20 years. Current CD’s are paying 3.50% annual interest. Which do you choose and why?
Suppose you have just won a $5 million lottery today. When you win the lottery, you...
Suppose you have just won a $5 million lottery today. When you win the lottery, you generally receive payments of the lottery jackpot over twenty years. Therefore, your $5 million lottery winnings consist of twenty annual payments of $250,000 each. But wait! Don’t forget about the taxes. The IRS will take 25 percent of each check, so you are left with $187,500 each year. Assume that the annual interest rate is 3%. So, if someone offered you a lump-sum of...
Suppose you have just won a $5 million lottery today. When you win the lottery, you...
Suppose you have just won a $5 million lottery today. When you win the lottery, you generally receive payments of the lottery jackpot over twenty years. Therefore, your $5 million lottery winnings consist of twenty annual payments of $250,000 each. But wait! Don’t forget about the taxes. The IRS will take 25 percent of each check, so you are left with $187,500 each year. Assume that the annual interest rate is 3%. So, if someone offered you a lump-sum of...
Question 2 A state lottery makes the following announcement: "Frederick Carbuncle has just won $100 million! We'll pay Frederick $10 million each year for the next 10 years!" a. Has Frede...
Question 2 A state lottery makes the following announcement: "Frederick Carbuncle has just won $100 million! We'll pay Frederick $10 million each year for the next 10 years!" a. Has Frederick really won $100 million? Explain b. Many state lotteries allow winners to choose a single payment instead of a series of annual payments. "We'll offer you the present value of your annual payments, Frederick," the lottery commissioner says. "And because we're feeling generous, we'll use a really high interest...
You just won the $66 million lottery. You will receive $2.3 million a year for the...
You just won the $66 million lottery. You will receive $2.3 million a year for the next 25 years plus an additional payment of $8.5 million at the end of 25 years. The interest rate is 11 percent. How much is your lottery prize worth today?
Gary has just used his credit card to buy a new watch. He got the watch...
Gary has just used his credit card to buy a new watch. He got the watch on sale for $235. The regular price was $290. He used a credit card that has an Annual Percentage Rate of 20%. If Gary makes the minimum monthly payment each month of $10: 19. How much will Gary end up paying for his new watch? 20. How long will it take Gary to pay for his watch? 21. What is the total amount of...
Lottery. Your dreams of becoming rich have just come true. You have won the State of...
Lottery. Your dreams of becoming rich have just come true. You have
won the State of Tranquility's Lottery. The state offers you two
payment plans for the $3,000,000 advertised jackpot. You can take
annual payments of $150,000 at the end of the year for the next 20
years today or $1,277,035 today.
~Please Answer a-b questions below~
Homework: Chapter 4 Homewo rk Score: 0 of 1 pt 15 of 16 (13 complete) P4-31 (similar to) Lottery Your dreams of becoming...
Lottery. Your dreams of becoming rich have just come true. You have won the State of...
Lottery. Your dreams of becoming rich have just come true. You have won the State of Tranquility's Lottery. The State offers you two payment plans for the $4,000,000 advertised jackpot. You can take annual payments of $80,000 at the end of the year for the next 50 years or $978,679 today. a. If your investment rate over the next 50 years is 10%, which payoff will you choose? b. If your investment rate over the next 50 years is 7%,...
You have just won $20,000 in the state lottery, which promises to pay you $1,000 (tax free) every year for the next twenty years. The interest rate is 5%. In reality, you receive the first payment of $1,000 today, which is worth today. (Round your response to the nearest penny) The value of the second $1,000 payment is worth Stoday (Round your response to the nearest penny) Your total lottery winnings are actually worth $20,000 to you today
You have just won the Multi-State Lottery. You have the option of receiving a check for $40,000,000 every year at the end of the next 23 years. The lottery commission also allows you the option of receiving a one-time payment of $414,842,358 when you turn in the winning ticket. What is the approximate interest rate that the lottery commission is using to determine the one-time payment? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round...
Question 2 A state lottery makes the following announcement: "Frederick Carbuncle has just won $100 million! We'll pay Frederick $10 million each year for the next 10 years!" a. Has Frederick really won $100 million? Explain b. Many state lotteries allow winners to choose a single payment instead of a series of annual payments. "We'll offer you the present value of your annual payments, Frederick," the lottery commissioner says. "And because we're feeling generous, we'll use a really high interest...
Gary has just used his credit card to buy a new watch. He got the watch on sale for $235. The regular price was $290. He used a credit card that has an Annual Percentage Rate of 20%. If Gary makes the minimum monthly payment each month of $10: 19. How much will Gary end up paying for his new watch? 20. How long will it take Gary to pay for his watch? 21. What is the total amount of...
Lottery. Your dreams of becoming rich have just come true. You have
won the State of Tranquility's Lottery. The state offers you two
payment plans for the $3,000,000 advertised jackpot. You can take
annual payments of $150,000 at the end of the year for the next 20
years today or $1,277,035 today.
~Please Answer a-b questions below~
Homework: Chapter 4 Homewo rk Score: 0 of 1 pt 15 of 16 (13 complete) P4-31 (similar to) Lottery Your dreams of becoming...
Lottery. Your dreams of becoming rich have just come true. You have won the State of Tranquility's Lottery. The State offers you two payment plans for the $4,000,000 advertised jackpot. You can take annual payments of $80,000 at the end of the year for the next 50 years or $978,679 today. a. If your investment rate over the next 50 years is 10%, which payoff will you choose? b. If your investment rate over the next 50 years is 7%,...
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