Rita just hit a modest lottery jackpot and wants to invest a lump sum so that...
Rita just hit a modest lottery jackpot and wants to invest a lump sum so that she can receive $4,200 each year for the next 15 years so that she can play the lottery then to fund the rest of her retirement. How much of her recent windfall must Rita invest today at 5%, compounded annually for the next 15 years so that she can live the Lotto-life for those 15 years?
Homework Answers
| amount of rita must invest for annual payment of 4200 "interest rate of 5% compounded annually | ||
| term given=15 years | ||
| investment to be made | $43,594.56 | =-PV(5%,15,4200,,0) |
Add Answer to:
Rita just hit a modest lottery jackpot and wants to invest a
lump sum so that...
Ms. Patricia Sullivan plans to create a fund from her lottery winnings to meet three objectives....
Ms. Patricia Sullivan plans to create a fund from her lottery winnings to meet three objectives. First, she wants to create a fund so that her mother can withdraw $20,000 per month for the remainder of her expected life of 20 years. Second, she wants to pay the down payment for her brother to buy a house upon graduation from college four years from now. She expects that he will need $100,000 for down payment at that time. Finally, she...
Your mom has reached retirement age and received a lump sum from NIB under the Special...
Your mom has reached retirement age and received a lump sum from NIB under the Special Early Retirement Fund (SERF). She would like an annual income of $90,000 at the end of each year for the next twenty years. How much should she invest in order to receive this income if the interest rate is 12% compounded semi-annually?
Rita Gonzales won the $41 milion lottery. She is to receive $1.8 million a year for...
Rita Gonzales won the $41 milion lottery. She is to receive $1.8 million a year for the next 15 years plus an additional lump sum payment of $14 million after 15 years. The discount rate is 11 percent. What is the current value of her winnings? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value = _______
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?
Rita Gonzales won the $47 million lottery. She is to receive $2.7 million a year for...
Rita Gonzales won the $47 million lottery. She is to receive $2.7 million a year for the next 15 years plus an additional lump sum payment of $6.5 million after 15 years. The discount rate is 10 percent. What is the current value of her winnings? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)...
Patricia wants to invest a sum of money today that will yield $17,000 at the end...
Patricia wants to invest a sum of money today that will yield $17,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today?
Patricia wants to invest a sum of money today that will yield $18,000 at the end...
Patricia wants to invest a sum of money today that will yield $18,000 at the end of 6 years. Assuming she can earn an interest rate of 6% compounded annually, how much must she invest today? $12,690 $16,920 $10,800 $15,851 $15,851
a) You just won $1,000,000 on the lottery. If you chose the payments over 20 years...
a) You just won $1,000,000 on the lottery. If you chose the payments over 20 years ($50,000 per year) how much is the value of the up-front cash option (present value) if the state uses a 6% rate of return (interest)? b) Katey needs $10,000 in 4 years to use as a down payment on a house. What amount must she invest today if her investment earns 10%? c) Linda invested $1500 today in a fund that earns 8% annually....
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...
Tanja wants to establish an account that will supplement her retirement income beginning 20 years from...
Tanja wants to establish an account that will supplement her retirement income beginning 20 years from now. Find the lump sum she must deposit today so that 600.000 will be available at time of retirement, the interest rate is 9%, compounded quarterly How much mu Tanja invest? P- (Round to the nearest cant as needed
Your mom has reached retirement age and received a lump sum from NIB under the Special Early Retirement Fund (SERF). She would like an annual income of $90,000 at the end of each year for the next twenty years. How much should she invest in order to receive this income if the interest rate is 12% compounded semi-annually?
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...
Tanja wants to establish an account that will supplement her retirement income beginning 20 years from now. Find the lump sum she must deposit today so that 600.000 will be available at time of retirement, the interest rate is 9%, compounded quarterly How much mu Tanja invest? P- (Round to the nearest cant as needed
Most questions answered within 3 hours.
-
For a Generalized Additive Model, what does a large
edf(empirical distribution function) value mean?
Thank you...
asked 31 seconds from now -
questions for Biology lab
An agarose gel electrophoresis assay performed with high quality
will NOT have...
asked 3 minutes ago -
A spring with spring constant 400 N/m is anchored at the bottom
of a frictionless 30^∘...
asked 7 minutes ago -
The half-life of 238U is 4.5×109 yr.
Find the number of disintegrations per hour emitted by...
asked 16 minutes ago -
y[n] = x[n] - 3x[n - 1] + 4x[n - 2]
What is the transfer function...
asked 22 minutes ago -
Which one of the following statements is TRUE?
a.
An agency relationship is when someone hires...
asked 36 minutes ago -
Consider the liquid phase reaction : A ---> Products which is
to take place in a...
asked 44 minutes ago -
QUESTION ONE: For the following reaction, 13.4 grams of chlorine
gas are allowed to react with...
asked 50 minutes ago -
An
Atwood's machine has one block of m1 = 0.370 kg and the other is of...
asked 52 minutes ago -
Why is Kevlar a stronger fabric then dacron? Provide two reasons
involving structures.
asked 1 hour ago -
Suppose you have a checkers board. (8 squares wide and 8
squares long) and you
have...
asked 1 hour ago -
Given the following function: QD = 200 - 5.25P
7.1 Derive the Regular Demand Function
7.2...
asked 1 hour ago