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Rita Gonzales won the $80 million lottery. She is to receive $2.4 million a year for the next 30 years plus an additional lump sum payment of $8 million after 30 years. The discount rate is 12 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.)




1012334445556666677777888 797 701 879 59 45 95 4 3 6 6 2 2 1 5 4 7 295 1481 10-2. 3 3 4 4 5 5 6 6 6 7 7 7 7 8 8 8 89999 1 012334555667778888899000 770 99753 80-2. 3 3 4 5 5 6 6 7 7 7 8 8 8 9 9 9 9 0 1 1 1 5 4 1 2 3 4 4 5 5 6 7 7 7 8 8 9 9 9 0 0 0 1 2 3 3 3527 2 1477 60-2. 3 4 4 5 6 6 7 7 8 8 99000112355 7 5012345567788990011224578 2 173 40 1. 2 3 4 5 6 6 7 8 8 9 . 0 1 1 2 2 3 3 5 791 2 30-2. 3 4 5 6 7 7 8 9 9 0 1 1 2 33447935 5 8 .7 6 4 3 1975 6 7 8 8 9 0 1 2 3 18529635334 012345 2344569 271 2 4321 -0. 1 2 3 4 5 6 7 8 9 0 1 2 3 34567825 32 39 1234567890123456789

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Answer #1

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy. B 1 프 . Ej-., Δ. : r_一 逻锂函Merge & Center. $, % , 弼,8 Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard Alignment Number Cells EC521 DW DX STEP 1 DY DZ EA EB EC ED 607 608 609 610 611 612 613 614 615 616 617 618 619 620 621 622 623 624 625 /4 | CALCULATOR .. LOAN OPTIONS PRESENT VALUE OF ANNUITY OF 2.4 MILLION FOR 30 YEARS 2.4 30 12% PMT YEARS RATE 19.33 EXCEL PV(DZ610,DZ609,-DZ608) (IN MILLIONS) 19332441.52 STEP 2 PRESENT VALUE OF 8 MILLION AFTER 30 YEARS FV YEARS RATE 30 12% 0.27 EXCEL PV(DZ619,DZ618,-DZ617) (IN MILLIONS) 267023.39 ANSWER PRESENT VALUE - PRESENT VALUE- 19.60 (IN MILLIONS STEP 1 +STEP 2 19599464.91 STEP 1+STEP 2 CAP STRU VALUE BOX DILUTION. DOLLAR COST AVG MORTGAGE / EXPO Sheet1 . Sheet2. Sh41- rences: x261 福 130% 08:20 01-02-2019Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum ー E ゴWrap Text aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard AY235 AO Alignment Number Cells Edting AQ AR AS AT AU AV AW AX AY BA 219 220 221 USING CALCULATOR STEP 1 PMT 2.4 30 12 RATE 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 4 CALCULATOR 19.33 IN MILLIONS OR PV 19332441.52 STEP 2 FV 30 RATE 12 0.27 267023.39 OR PV ANSWER: PRESENT VALUE 19599464.91 STEP 1+STEP 2 BOX DILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2 Shel 福 130% AN OPTIONS fv. ann CAP STRU VALUE 01-02-2019

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