You have won the lottery, and you must choose between three award options. You can select one of the following options:  To receive a lump sum today of $75 million, To receive 10 end-of-year payments of $12 million,

Q: You win a 1.8 million dollar lottery prize. You have a choice between recieving the winnings through…

A: Here,Lottery Prize is $1,800,000Time Period is 20 yearsAnnual Interest Rate is 4.4%

Q: The winner can choose to receive a lump sum of $1,000,000 now or annual payments of $50,000 for next…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Assume that your mother has offered you a choice of one of the three following Alternatives: $75,000…

A: Using the present value function in excel

Q: The prize in last week’s lottery was estimated to be worth $90 million. If you were lucky enough to…

A: Present value = Annual payment + Annual payment×1-(1+r)-(n-1)r=$3.6 million +$3.6…

Q: An investor has just won the lottery and will receive $200,000 per year at the end of each of the…

A: present value refers to the concept of the time, value of money which is used by investors for…

Q: You are offered ​$80,000 today or ​$300,000 in 11 years. Assuming that you can earn 14 percent on…

A: Choosing between $80,000 today and $300,000 in 11 years:Considering the time worth of money and the…

Q: You have the option to take a lump sum payout of $10,000 or take $1000 annually for 8 years. Which…

A: You have 2 option :(1) Take lump sum amount of $10,000 today0r (2) take $1000 annually for 8 years

Q: You won a raffle while you were down the shore with friends. For your prize, you can choose among…

A: Given the following information: Future value: $40,000 Discount rate: 8% Time period: 4 years

Q: As a prize, you are offered of one of the following three options: Option 1: $6,000 today, or Option…

A: Time value of money:   The value of money changes over a period time. The value of money depends on…

Q: You won a raffle while you were down the shore with friends. For your prize, you can choose among…

A: Given the following information: Future value: $75,000 Discount rate: 8% Time period: 4 years

Q: Suppose a state lottery prize is to be paid in 25 payments of $360,000 each at the end of each of…

A: Annuity refers to the periodic payment or receipt of cash flow. The annuity period usually…

Q: The winner of a $10,000,000 prize has the following payment choices. If the interest rate is 10%,…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: You just won a prize that comes with two payout choices. The first option is to get $140,000 right…

A: The time value of money is a concept in finance that evaluates the worth of money in terms of the…

Q: Felice Lucas has just won the state lottery and has the following three payout options for​…

A: Present value of the first option = Amount receivable at the end of each year x Present value of an…

Q: Present Value. Winners of the Georgia Lotto drawing are given the choice of receiving the winning…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: Present Value. Winners of the Georgia Lotto drawing are given the choice of receiving the winning…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Using the time value of money Congratulations! You have won a state lottery. The state lottery…

A: Present value (option #1) = Amount receivable at the end of 5th year *PVF@6% ,5 year =…

Q: You have just won the state lottery and have two choices for collecting your winnings. You can…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Suppose you just won a lottery of $100 million, that will can be cashed out over 5 years ($20…

A:

Q: If you were the $10,000,000 winner of the Mega-Millions Lottery, which payout option would be the…

A: The concept of the time value of money states that the same amount of money is worth more now than…

Q: You have won the lottery! The lottery officials have given you a choice between receiving (A)…

A: Solution Given Two options are (A) $15,000,000 today, or (B) $1,000,000 at the end of each of the…

Q: Related to Checkpoint 5.4) (Present-value comparison) You are offered $90,000 today or $340,000 in…

A: We have to do present value comparisons here. For that we will use and apply the time value of money…

Q: You are offered a $3,360,000 retirement package to be given in $120,000 payments at the end of each…

A: Annuity refers to series of equalized payments that are either made start or end of definite period.…

Q: How much would you accept in a lump sum today, in place of a lottery payment of $35,000 at the end…

A: Formula:

Q: You have just won the lottery and will receive $580,000 in one year. You will receive payments for…

A: Data given: Cash flow Year 1 (CF1) =$580000 n=28 years Growth (g)=3% Discount rate (r) =11%…

Q: You have received $200,000 from the PowerBall Lottery and want to have half that amount available…

A: Total lottary amount = $200,000 Amount required at retirement (FV) = $200,000/2 = $100,000 Interest…

Q: You are going to receive $220,000 in 50 years. What is the difference in present value between using…

A: Time value of money means that the money we receive today will be worth more than the money that…

Q: You are negotiating the terms of a legal settlement. You have been given several different…

A: Present Value means value of future benefits at the current date. It is calculated by dividing 1+r…

Q: Suppose that you expect to receive an inheritance of £10,000 in one year. You will want to put this…

A: A Forward Rate Agreement (FRA) is a financial derivative that enables parties to lock in a…

Q: A lottery winner will receive $6 million at the end of each of the next twelve years. What is the…

A: To calculate the future value (FV) when the winner receives $6 million at the beginning of each of…

Q: he lottery commission is offering the winner of a recent jackpot a payout of 15 yearly payments…

A: 1.Present value of annuity.PV = A*wherePV = present value of annuityA = periodic paymentsr =…

Q: As the winner of a competition you are entitled to $5,000 at the end of next year, with this amount…

A: It is a case of the growing annuity. Here, the annuity is growing each year with a fixed percentage.…

Q: Your sister has presented you with the following choices. She will offer you either $2,000 in a year…

A: Payment after a year = $ 2000 Payment after four years = $ 3000 Annual interest rate = 10% or 20%

Q: The $45 million lottery prize that you have just won actually pays out $4.5 million a year for 20…

A: The topic is related to financial mathematics, more precisely to the process of calculating a cash…

Q: From 2025 to 2029, the TU Clausthal would like to award the best thesis of the year with a sum of…

A: Annuity refers to the payment series of same nominal value which are paid or received at a same…

Q: ottery Incorporated has decided to offer winners a choice of $100,000 in 10 years or some amount…

A: Present value is the equivalent value of money today of the future money to be received based on the…

Q: 3: A lottery winner has a decision between a lump sum of $1,000,000 or a 20 year annuity of $100,000…

A: The lump sum amount is $1,000,000. The annual payment is $100,000. The rate of interest is 5%. The…

Q: You have some property for sale and have received two offers. The first offer is for $189,000 today…

A: According to the financial principle known as "the time value of money," a certain amount of cash…

Q: Question: Congratulations! You have won a state lottery. The state lottery offers you the following…

A: To determine the present value of the payout for Option #1, where you receive $14,000,000 annually…

Q: You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that…

A: Time value of money refers to the concept that money in hand today is worth more than the same…

Q: You won a 1.5 million lottery. You are given the following options to get paid on your winnings. If…

A:

Q: Related to Checkpoint 5.4) (Present-value comparison) You are offered $100.000 today or $300,000 in…

A: Information Provided: Future value = $300,000 Years = 13 Interest rate = 11%

Q: perpetual equivalent annual worth

A: Annual worth refers to the net of all the benefits and the expenses which are incurred in the…