Myrna Loy has just won a lottery. The payout is $51293 a year for 20 years....
Myrna Loy has just won a lottery. The payout is $51293 a year for 20 years. Myrna will receive the first payment in one year. If the appropriate discount rate is 6% per year with annual compounding, what is the present value of Myrna’s winnings?
Do not round at intermediate steps in your calculation. Round your answer to the nearest dollar. Enter your answer without the $ symbol.
Homework Answers
| Year | Price | Discount factor | Discounted Price |
| 1 | 51293 | 0.943396226 | 48389.62264 |
| 2 | 51293 | 0.88999644 | 45650.5874 |
| 3 | 51293 | 0.839619283 | 43066.59188 |
| 4 | 51293 | 0.792093663 | 40628.86027 |
| 5 | 51293 | 0.747258173 | 38329.11346 |
| 6 | 51293 | 0.70496054 | 36159.541 |
| 7 | 51293 | 0.665057114 | 34112.77453 |
| 8 | 51293 | 0.627412371 | 32181.86276 |
| 9 | 51293 | 0.591898464 | 30360.24789 |
| 10 | 51293 | 0.558394777 | 28641.74329 |
| 11 | 51293 | 0.526787525 | 27020.51254 |
| 12 | 51293 | 0.496969364 | 25491.04957 |
| 13 | 51293 | 0.468839022 | 24048.15997 |
| 14 | 51293 | 0.442300964 | 22686.94337 |
| 15 | 51293 | 0.417265061 | 21402.77676 |
| 16 | 51293 | 0.393646284 | 20191.29883 |
| 17 | 51293 | 0.371364419 | 19048.39512 |
| 18 | 51293 | 0.350343791 | 17970.18408 |
| 19 | 51293 | 0.33051301 | 16953.00385 |
| 20 | 51293 | 0.311804727 | 15993.39986 |
| 588327 |
Add Answer to:
Myrna Loy has just won a lottery. The payout is $51293 a year
for 20 years....
You have just won the lottery and will receive $1,000,000 in one year. You will receive...
You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 25 years and the payments will increase by 3.5 percent per year. If the appropriate discount rate is 7.5 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
value: 2.00 points Lottery Winnings The $18.2 million lottery payment that you just won actually pays...
value: 2.00 points Lottery Winnings The $18.2 million lottery payment that you just won actually pays $1.3 million per year for 14 years. If the discount rate is 17.70% and the first payment comes in 1 year. a. What is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value $ million b. What is the present value of the winnings, if the first payment comes immediately?...
You have just won the Georgia Lottery with a jackpot of $37,000,000. Your winnings will be...
You have just won the Georgia Lottery with a jackpot of $37,000,000. Your winnings will be paid to you in 26 equal annual installments with the first payment made immediately. If you feel the appropriate annual discount rate is 11%, what is the present value of the stream of payments you will receive?
You have just won the NC Lottery with a jackpot of $40,000,000. Your winnings will be...
You have just won the NC Lottery with a jackpot of $40,000,000. Your winnings will be paid to you by dividing the $40,000,000 into 26 equal annual installments with the first payment made immediately. If you feel the appropriate annual discount rate is 4.7%, what is the present value of the stream of payments you will receive? $22,816,344 $23,888,712 $23,295,080 $24.703,188
Growing Annuity [LO1] You have just won the lottery and will receive $1,500,000 in one year....
Growing Annuity [LO1] You have just won the lottery and will receive $1,500,000 in one year. You will receive payments for 30 years, and the payments will increase by 2.7 percent per year. If the appropriate discount rate is 6.8 percent, what is the present value of your winnings?
You have just won the lottery and will receive $480,000 in one year. You will receive...
You have just won the lottery and will receive $480,000 in one year. You will receive payments for 29 years, which will increase 5 percent per year. The appropriate discount rate is 11 percent. Required: What is the present value of your winnings? $23,274 $32,083,598 $6,147,204 $32,083,598 $6,403,337
You have just won the lottery and will receive $530,000 in one year. You will receive...
You have just won the lottery and will receive $530,000 in one year. You will receive payments for 21 years, and the payments will increase 5 percent per year. If the appropriate discount rate is 11 percent, what is the present value of your winnings? Multiple Choice $19,541,407 $5,840,094 $19,541,407 $6,083,431 $59,223
You have just won the lottery and will receive $490,000 in one year. You will receive...
You have just won the lottery and will receive $490,000 in one year. You will receive payments for 30 years, which will increase 3 percent per year. The appropriate discount rate is 11 percent. Required: What is the present value of your winnings? rev: 09_17_2012 $21,405 $51,641,854 $51,641,854 $5,256,545 $5,475,568
Question 9 (of 10) value 1.00 points You have just won the lottery. You will receive...
Question 9 (of 10) value 1.00 points You have just won the lottery. You will receive $2,520,000 today, and then receive 40 payments of $1,260,000 These payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $20 million. The interest rate is an APR of 10 percent compounded daily. Assume there are 12 months in a year, each with 30 days...
You just won the lottery, which promises you $540,000 per year for the next 20 years,...
You just won the lottery, which promises you $540,000 per year for the next 20 years, starting in one year. If your discount rate is 8.25%, what is the present value of your winnings? $5,475,199 $5,356,196 $5,426,920 $5,470,679 $5,204,600
You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 25 years and the payments will increase by 3.5 percent per year. If the appropriate discount rate is 7.5 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
value: 2.00 points Lottery Winnings The $18.2 million lottery payment that you just won actually pays $1.3 million per year for 14 years. If the discount rate is 17.70% and the first payment comes in 1 year. a. What is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value $ million b. What is the present value of the winnings, if the first payment comes immediately?...
You have just won the NC Lottery with a jackpot of $40,000,000. Your winnings will be paid to you by dividing the $40,000,000 into 26 equal annual installments with the first payment made immediately. If you feel the appropriate annual discount rate is 4.7%, what is the present value of the stream of payments you will receive? $22,816,344 $23,888,712 $23,295,080 $24.703,188
Question 9 (of 10) value 1.00 points You have just won the lottery. You will receive $2,520,000 today, and then receive 40 payments of $1,260,000 These payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $20 million. The interest rate is an APR of 10 percent compounded daily. Assume there are 12 months in a year, each with 30 days...
You just won the lottery, which promises you $540,000 per year for the next 20 years, starting in one year. If your discount rate is 8.25%, what is the present value of your winnings? $5,475,199 $5,356,196 $5,426,920 $5,470,679 $5,204,600
Most questions answered within 3 hours.
-
Focus on Critical Thinking: Are citizen suit provisions an
effective way to achieve environmental objectives? Do...
asked 17 minutes ago -
Gaseous butane CH3CH22CH3 will react with gaseous oxygen O2 to
produce gaseous carbon dioxide CO2 and...
asked 42 minutes ago -
Required to construct counters using synchronous sequential
logic. Use one hex digit to display the result....
asked 52 minutes ago -
(Ultra) Large-Scale Systems –Characteristics?
explain in detail
How the nature of an enterprise affect complex...
asked 1 hour ago -
Some of the antibiotic susceptible strains show colonies within
the clear zone. What it does this...
asked 1 hour ago -
In the lottery game Fantasy 5 you have to select 5 numbers from
the numbers {1,2,3,.......,38,39}....
asked 1 hour ago -
A call option on Jupiter Motors stock with an exercise price of
$80 and one-year expiration...
asked 1 hour ago -
What is the disadvantage of an automated vulnerability scan tool
like Nessus?
prone to false negatives...
asked 1 hour ago -
An Atwood’s machine has m1 = 0.105 kg, m2 = 0.100 kg, hung from
a 5.00...
asked 1 hour ago -
A firm is considering a project that has the following estimated
cashflows:
Increased sales to business...
asked 1 hour ago -
Programming logic C# visual studio
What are the values of the double variable x after each...
asked 1 hour ago -
A bag has 8 red marbles, 6 green marbles, 4 blue marbles, and 2
yellow marbles....
asked 1 hour ago