Joan Lucky won the $6 million lottery She is to recerve $2 3 million a year for the next 25 years plus an additional lump-sum payment of $8.5 million after 25 years. The discount rate is 11 percent What is the current value of her winnings? Use Appendex B and Appendx D. (Provide answers in terms of millions of dollars. Round "PV Foctor" to 3 decimal pleces. Round the final answer to the nearest whole dollar.) Current Value $ 19.995

Joan Lucky won the $6 million lottery She is to recerve $2 3 million a year for the next 25 years plus an additional lump-sum payment of $8.5 million after 25 years. The discount rate is 11 percent What is the current value of her winnings? Use Appendex B and Appendx D. (Provide answers in terms of millions of dollars. Round "PV Foctor" to 3 decimal pleces. Round the final answer to the nearest whole dollar.) Current Value $ 19.995

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A lottery winner will receive $1 million at the end of each of the next ten years. What is the future value (FV) of her winnings at the time of her final payment, given that the interest rate is 8.5% per year? A. $14.84 million B. $19.95 million C. $18.95 million D. $13.84 million
A lottery winner will receive $1 million at the end of each of the next twelve years. What is the future value (FV) of her winnings at the time of her final payment, given that the interest rate is 8.1% per year? A. $19.09 million B. $30.54 million C. $26.73 million D. $15.27 million
Joan Lucky won the $44,000,000 lottery. She is to receive $1.3 million a year for the next 25 years plus an additional lum payment of $11.5 million after 25 years. The discount rate is 18 percent. What is the current value of her winnings? (Use a Financial calculator to arrive at the answer. Round the final answer nearest whole dollar.) Current Value $
As the winner of a lottery you are promised 15 payments of $0.98 million each year starting a year from now. If the discount rate is 0.095, what is the present value of your winnings? Instruction: Type ONLY your numerical answer in the unit of millions,
Rita Gonzales won the $41 million lottery. She is to receive $1.5 million a year for the next 19 years plus an additional lump sum payment of $12.5 million after 19 years. The discount rate is 14 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.)
You win a 1.8 million dollar lottery prize. You have a choice between recieving the winnings through regular payments over 20 years or recieving a lump sum amount equal to the present value of the prize, calculated with an annual interest rate of 4.4 %. Consider the decision by answering the questions below. Round all answers to the two decimal places (the nearest cent). (a) If you receive the winnings through equal payments (at the end of the year) for 20 years, how much would each payment be? Payment amount: $ (b) If you opt to recieve the present value of the winnings, how much would you receive?
Jane Bauer has won the lottery and has the following four options for receiving her winnings: Receive $100,000 at the beginning of the current year Receive $108,000 at the end of the year Receive $20,000 at the end of each year for eight years Receive $10,000 at the end of each year for 30 years Jane can invest her winnings at an interest rate of 8% compounded annually at a major bank. Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 Calculate the Present value for each of the above options. Round all answers to the nearest dollar. Present Value Option 1 $fill in the blank 1 Option 2 $fill in the blank 2 Option 3 $fill in the blank 3 Option 4 $fill in the blank 4 Which of the payment options should Jane choose?
Jake won $350,000 in the lottery! He will receive $35,000 each year at the beginning of each of the discounted rate of 5%, what is the present value of the lottery winnings? $0.00 ANSWER Number of Years Number of Periods/Year Number of Periods Annual Interest Rate Interest Rate/Period Payment Future Value Type (0=END; 1=BEG) Present Value
You have just received notification that you have won the $2.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 62 years from now. What is the present value of your windfall if the appropriate discount rate is 11 percent? Multiple Choice $12,395.81 $3,794.39 $3,949.26 $3,562.08 $3,871.82
You Answered Correct Answers You won the lottery. You could receive $100,000 a year for the next 10 years or a lump sum today. The lottery uses a 12 percent discount rate (compounded annually). What would be the lump sum amount you would receive today? 632,824.98 565,022.3 (with margin: 100)
You have just won a two-part lottery! The first part will pay you $50,000 at the end of each of the next 20 years. The second part will pay you $1,000 at the end of each month over the same 20 year period. Assuming a discount rate of 7%, what is the present value of your winnings? $658,683 $567,572 $529,303 $610,462 $495,048
Current Attempt in Progress Marigold Lou has just won the lottery and will receive an annual payment of $105,000 every year for the next 19 years. If the annual interest rate is 11%, what is the present value of the winnings? (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Click here to view the factor table. Present value $

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