You and 11 coworkers just won $5 million ($416,666.67 each) from the state lottery. Assuming you...
You and 11 coworkers just won $5 million ($416,666.67 each) from the state lottery. Assuming you each receive your share over 19 years and that the state lottery earns a 6 percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option?
Homework Answers
PV = FV / (1 + r)n
= $416,666.67 / (1 + 0.06)19
= $416,666.67 / 3.0256 = $137,713.75
The present value of my share of prize before taxes is $137,713.75 if I request the ‘up-front cash’ option.
Add Answer to:
You and 11 coworkers just won $5 million ($416,666.67 each)
from the state lottery. Assuming you...
You and 11 coworkers just won $19 million ($1,583,333.33 each) from the state lottery. Assuming you...
You and 11 coworkers just won $19 million ($1,583,333.33 each) from the state lottery. Assuming you each receive your share over 17 years and that the state lottery earns a 5 percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option? (Note: Also assume an ordinary annuity-payments made at the end of each period.) The present value of your prize before taxes if you request the 'up-front cash'...
You and 11 coworkers just won $14 million ($1,166,666.67 each) from the state lottery. Assuming you...
You and 11 coworkers just won $14 million ($1,166,666.67 each) from the state lottery. Assuming you each receive your share over 17 years and that the state lottery earns a 8 percent return on its funds, what is the present value of your prize before taxes if you request the up-front cash' option? Click on the table icon to view the annuity table The present value of your prize before taxes if you request the 'up-front cash' option is S...
You and 11 coworkers just won $18 million ($1,500,000.00 each) from the state lottery. Assuming you...
You and 11 coworkers just won $18 million ($1,500,000.00 each) from the state lottery. Assuming you each receive your share over 16 years and that the state lottery earns a 9 percent return on its funds, what is the present value of your prize before taxes if you request the up front cash option? (note: assume an ordinary annuity-- payment made at the end of each period) The present value of your prize before taxes if you request the up...
You and 11 coworkers just won $18 million ($1,500,000.00 each) from the state lottery. Assuming you...
You and 11 coworkers just won $18 million ($1,500,000.00 each) from the state lottery. Assuming you each receive your share over 18 years and that the state lottery earns a 3 percent return on its funds, whatis the present value of your prize before taxes r you recu uest the 'up-front cash' option? Click on the table icon to view the annuity table The present value of your prize before taxes if you request the 'up-front cash' option is S...
You and 11 coworkers just won $14 million ($1,166,666.67 each) from the state lottery. Assuming you...
You and 11 coworkers just won $14 million ($1,166,666.67 each) from the state lottery. Assuming you each receive your share over 17 years and that the state lottery earns a 9 percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option? (Note: Also assume an ordinary annuity-payments made at the end of each period.) Click on the table icon to view the annuity table ? The present value...
You and 11 coworkers just won $12 million ($1,000,000.00 each) from the state lottery. Assuming you...
You and 11 coworkers just won $12 million ($1,000,000.00 each) from the state lottery. Assuming you each receive your share over 16 years and that the state lottery earns a 4 percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option? (Note: Also assume an ordinary annuity-payments made at the end of each period.)
Gabrielle just won $3 million in the state lottery. She is given the option of receiving...
Gabrielle just won $3 million in the state lottery. She is given the option of receiving a of $1,400,000 now, or she can elect to receive $120,000 at the end of each of the next 25 years. If Gabrielle can earn 6% annually on her investments, which option should she take? If Gabrielle takes the prize as an annuity, the present value of the 25-year ordinary annuity is $ (Round to the nearest dollar.)
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?
Congratulations! You have just won the State Lottery. The lottery prize was advertised as an annualized $105 million pai...
Congratulations! You have just won the State Lottery. The lottery prize was advertised as an annualized $105 million paid out in 30 equal annual payments beginning immediately. The annual payment is determined by dividing the advertised prize by the number of payments. Instead you could take a one lump cash prize of the present value of all the annuity payments using a 4.5% discount rate. You now have up to 60 days to determine whether to take the cash prize...
You just won the $62 million lottery. You will receive $1.9 million a year for the...
You just won the $62 million lottery. You will receive $1.9 million a year for the next 25 years plus an additional payment of $14.5 million at the end of 25 years. The interest rate is 13 percent. How much is your lottery prize worth today? (Enter your answer as a positive number rounded to 2 decimal places.)
You and 11 coworkers just won $14 million ($1,166,666.67 each) from the state lottery. Assuming you each receive your share over 17 years and that the state lottery earns a 8 percent return on its funds, what is the present value of your prize before taxes if you request the up-front cash' option? Click on the table icon to view the annuity table The present value of your prize before taxes if you request the 'up-front cash' option is S...
You and 11 coworkers just won $18 million ($1,500,000.00 each) from the state lottery. Assuming you each receive your share over 18 years and that the state lottery earns a 3 percent return on its funds, whatis the present value of your prize before taxes r you recu uest the 'up-front cash' option? Click on the table icon to view the annuity table The present value of your prize before taxes if you request the 'up-front cash' option is S...
You and 11 coworkers just won $14 million ($1,166,666.67 each) from the state lottery. Assuming you each receive your share over 17 years and that the state lottery earns a 9 percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option? (Note: Also assume an ordinary annuity-payments made at the end of each period.) Click on the table icon to view the annuity table ? The present value...
Gabrielle just won $3 million in the state lottery. She is given the option of receiving a of $1,400,000 now, or she can elect to receive $120,000 at the end of each of the next 25 years. If Gabrielle can earn 6% annually on her investments, which option should she take? If Gabrielle takes the prize as an annuity, the present value of the 25-year ordinary annuity is $ (Round to the nearest dollar.)
Most questions answered within 3 hours.
-
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 23 minutes ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 22 minutes ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 27 minutes ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 37 minutes ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 1 hour ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 51 minutes ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 1 hour ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 59 minutes ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 59 minutes ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 1 hour ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 1 hour ago -
How much money should be invested today in order to have $8340
at the end of...
asked 1 hour ago