Homework Answers
Present value of Installment Plan = Annual Installment x Cumulative present value factor @8% for 20 years
= $150000*9.8182
= $1472730
No, he should not choose the one time payment.
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The winner of a lottery is awarded $3,000,000 to be paid in annual installments of $150,000 for 20 years. Alternati...
000 to be paid in annual Installiments of $200,000 for 20 years. Alternatively, the winner can ac...
000 to be paid in annual Installiments of $200,000 for 20 years. Alternatively, the winner can accept a "cash value" one-time payment of can earn 7% annually on the winnings. What is the present value of the installment plan? (Round your answer to two decimal places) | s 1,800,000, me winner estimates he Should he choose the one-time payment instead? Yes, he should choose the one-time payment O No, he should not choose the one-time payment Need Help? es e...
Please answer these two questions! These questions are from the chapter integrals. Thanks 8. + 0/1...
Please answer these two questions! These questions are from the
chapter integrals.
Thanks
8. + 0/1 points Previous Answers SApCalcBr1 6.2.027. My Notes + Ask Your Teacher A retiree is paid $1800 per month by an annuity. If the income is invested in an account that earns 6% interest compounded continuously, what is the future value of the income after ten years? (Round your answer to two decimal places.) $ 295959.60 x Need Help? Read It Talk to a Tutor...
Charlie, who is just 16 years old, won a lottery. However, the lottery does not pay...
Charlie, who is just 16 years old, won a lottery. However, the lottery does not pay out money until a person is at least 25 years old. Charlie hires a financial consultant and this consultant suggests that Charlie invest the money and then begin receiving monthly payments of 2500$ once he reaches age 25. The consultant also suggests that Charlie should protect himself from inflation by having his payments increase by 2.3% each year. Thus, the 12 monthly payments in...
Charlie, who is just 16 years old, won a lottery. However, the lottery does not pay out money until a person is at least...
Charlie, who is just 16 years old, won a lottery. However, the lottery does not pay out money until a person is at least 25 years old. Charlie hires a financial consultant and this consultant suggests that Charlie invest the money and then begin receiving monthly payments of 2500$ once he reaches age 25. The consultant also suggests that Charlie should protect himself from inflation by having his payments increase by 2.3% each year. Thus, the 12 monthly payments in...
Steve Long has just learned he has won a $511,700 prize in the lottery. The lottery...
Steve Long has just learned he has won a $511,700 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Steve takes all the money today, the state and federal governments will deduct taxes at a rate of 47% immediately. (2) Alternatively, the lottery offers Steve a payout of 20 equal payments of $42,100 with the first payment occurring when Steve turns in the winning ticket. Steve will be taxed on each of...
Henry Long has just learned he has won a $500,600 prize in the lottery. The lottery...
Henry Long has just learned he has won a $500,600 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Henry takes all the money today, the state and federal governments will deduct taxes at a rate of 46% immediately. (2) Alternatively, the lottery offers Henry a payout of 20 equal payments of $39,200 with the first payment occurring when Henry turns in the winning ticket. Henry will be taxed on each of...
A lottery winner will receive $1 million at the end of each of the next ten...
A lottery winner will receive $1 million at the end of each of the next ten years. What is the future value of her winnings at the time of her final payment (in millions of dollars), given that the interest rate is 9.5% per year? (Round your answer to three decimal places.) $ million -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Your grandmother has been putting $1,000 into a savings account on every birthday since your first (that is, when you turned one). The account pays...
Dave Cooke hits the $160,000 jackpot at the Palms Casino in Las Vegas. The casino gives...
Dave Cooke hits the $160,000 jackpot at the Palms Casino in Las Vegas. The casino gives him two options for collecting his winnings: Option A: Cooke can take all of his winnings today. They will be taxed by the federal government at 20%. Option B: Cooke can receive his winnings on an installment plan. He would receive 2020 equal payments of $10,000 beginning today. Each payment will be taxed at a rate of 10%. (Assume that taxes are taken out...
Problem 6-4 Tony Long has just learned he has won a $512,600 prize in the lottery....
Problem 6-4 Tony Long has just learned he has won a $512,600 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Tony takes all the money today, the state and federal governments will deduct taxes at a rate of 47% immediately. (2) Alternatively, the lottery offers Tony a payout of 20 equal payments of $37,400 with the first payment occurring when Tony turns in the winning ticket. Tony will be taxed on...
Will somebody help me figure this out and help with formulas Name: Instructor: Intermediate Accounting. 15...
Will somebody help me figure this out and help with
formulas
Name: Instructor: Intermediate Accounting. 15 Edition by Kieso, Weygandt, and Warfield Date: Course: P6-4 (Evaluating Payment Alternatives) Howie Long has just learned he has won a 500000 prize in the lottery. The lottery has given him two options for receiving payments: (1) If Howie takes al the money today, the state and the federal governments will deduct taxes at a rate of 46% !immediately (2) Alternatively the lottery offers...
000 to be paid in annual Installiments of $200,000 for 20 years. Alternatively, the winner can accept a "cash value" one-time payment of can earn 7% annually on the winnings. What is the present value of the installment plan? (Round your answer to two decimal places) | s 1,800,000, me winner estimates he Should he choose the one-time payment instead? Yes, he should choose the one-time payment O No, he should not choose the one-time payment Need Help? es e...
Please answer these two questions! These questions are from the
chapter integrals.
Thanks
8. + 0/1 points Previous Answers SApCalcBr1 6.2.027. My Notes + Ask Your Teacher A retiree is paid $1800 per month by an annuity. If the income is invested in an account that earns 6% interest compounded continuously, what is the future value of the income after ten years? (Round your answer to two decimal places.) $ 295959.60 x Need Help? Read It Talk to a Tutor...
Steve Long has just learned he has won a $511,700 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Steve takes all the money today, the state and federal governments will deduct taxes at a rate of 47% immediately. (2) Alternatively, the lottery offers Steve a payout of 20 equal payments of $42,100 with the first payment occurring when Steve turns in the winning ticket. Steve will be taxed on each of...
Henry Long has just learned he has won a $500,600 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Henry takes all the money today, the state and federal governments will deduct taxes at a rate of 46% immediately. (2) Alternatively, the lottery offers Henry a payout of 20 equal payments of $39,200 with the first payment occurring when Henry turns in the winning ticket. Henry will be taxed on each of...
Problem 6-4 Tony Long has just learned he has won a $512,600 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Tony takes all the money today, the state and federal governments will deduct taxes at a rate of 47% immediately. (2) Alternatively, the lottery offers Tony a payout of 20 equal payments of $37,400 with the first payment occurring when Tony turns in the winning ticket. Tony will be taxed on...
Will somebody help me figure this out and help with
formulas
Name: Instructor: Intermediate Accounting. 15 Edition by Kieso, Weygandt, and Warfield Date: Course: P6-4 (Evaluating Payment Alternatives) Howie Long has just learned he has won a 500000 prize in the lottery. The lottery has given him two options for receiving payments: (1) If Howie takes al the money today, the state and the federal governments will deduct taxes at a rate of 46% !immediately (2) Alternatively the lottery offers...
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