Shelley wants to cash in her winning lottery ticket. She can either receive eight $100,000 semiannual...
Shelley wants to cash in her winning lottery ticket. She can either receive sixteen, $205,000 semiannual payments starting today, or she can receive a single-amount payment today based on a 6% annual interest rate. What is the single-amount payment she can receive today?
11) Today, Thomas deposited $100,000 in a three-year. 12% CD that compounds quarterly What is the maturity value of the CD? A) $109,270. B) $119,410. C) $309,090. D) $142,576. 12) Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $50,000 five years from now. How much must Carol deposit to accomplish her goal? A) $43.131. B) $35.000. C) $37,205. D) $35,069. 13) At the end of...
FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 11.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347 4 1.12551 0.88849 4.1836 3.71719 4.3091 3.82861 5 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710 61.19405 0.83748 6.4684 5.41719 6.6625 5.57971 7 1.22987 0.81309 7.6625 6.23028 7.8923 6.41719 8 1.26677 0.78941 8.8923 701969 9.1591 7.23028 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 101.34392 0.74409 11.4639 8.5302e 11.8078 8.78611 111.38423...
help with explanations please 6. Suppose that you have a winning lottery ticket for $100,000. The State of California doesn't pay this amount up front this is the amount you will receive over time. The State offers you two options. The first pays you $80,000 up front and that will be the entire amount. The second pays you winnings over a three year period. The last option pays you a large payment today with small payments in the future. The...
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?
The $1.6 Billion Mega-millions winning lottery ticket is based upon the total amount of cash received if the annuity option is taken. The cash prize is $913,700,000 which you get immediately. The annuity option starts with a $ 24,082,300. payment now and then annual payments that are each 5% higher than the last payment for a total of 30 payments. Let’s complicate this further and model Federal (24%) and CT State taxes (7%) which take away from your earnings. a....
Winning one of the big national lotteries provides a choice of how to receive the money. You can receive a much-reduced lump sum (like half or so) today, or the full amount in twenty annual payments starting today. Discuss how you can determine which financial deal is better. Also, what are the non-financial aspects to winning the lottery and how do they influence which option to take?
Giovanna will be borrowing $100,000 today to open her own business, and she will pay it back with 20 yearly payments starting one year from today. If the effective annual interest rate is 12%, how much will the final payment be if the amount of principal reduced each year is constant?
Winning one of the big national lotteries provides a choice of how to receive the money. You can receive a much-reduced lump sum (like half or so) today, or the full amount in twenty annual payments starting today. Discuss how you can determine which financial deal is better. Also, what are the non-financial aspects to winning the lottery and how do they influence which option to take?
9. You won the lottery and you are scheduled to receive 30 annual payments of $100,000, starting next year. If your opportunity cost of money is 12% and you asked to receive your prize in cash today as a lump-sum payment, how much would you take home?