23. A person wins Euro Dreams, a lottery that pays 20.000 € per month for 30 years. If the current annual effective rate is 6%, what is the present value of his winnings? (consider the payments at the end of each period)

Q: Using an annual effective interest rate of 7%, find X

A: To find the value of X, we need to calculate the present value of the cash flows using the given…

Q: A person buys a piece of lot for 100,000 pesos down payment and 10 deferred semi-annual payments of…

A: Quantum and timing of cash flows emanating from an investment decision are known. The present worth…

Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you…

A: A deferred annuity is an agreement with an insurance broker to pay the owner a monthly income or a…

Q: Congratulations, you just won the lottery! As the winner, you will receive payments of $2 million at…

A: The present value of an annuity due is the calculation used to determine the current value of a…

Q: The interest rate is 3.6% per annum (p.a.). We want to save 100,000 kroner by making fixed payments…

A: An annuity refers to a payment series that provides periodic amounts in exchange for a lump-sum…

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: You want to retire 32 years from today and buy a beach house in Costa Rica. Today, those houses sell…

A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…

Q: ou won the lottery! You are considering whether or not to accept a lump sum amount or an annual…

A: Annual cash inflow (P) = $ 91,873 Discount rate (r) = 6% Number of annual deposits (n) = 12

Q: What is the present value of the payments if they are in the form of an ordinary annuity? What is…

A: The present value can be calculated as follows : Calculations for above :

Q: (Q25) You were given an annuity 4 years ago (in 2019) that guarantees a payout of $5,000 every 3…

A: The PV of an investment refers to the cumulative value of its cash flows at present assuming they…

Q: 4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in…

A: Annual Deposit = 1000 Time period of deposits = 3 years Interest Rate = 10%

Q: A lottery winner will receive $5.5 million every 6 months for the next twenty years. What is the…

A: The objective of this question is to calculate the future value of the lottery winnings, given that…

Q: You will deposit $105 from each of your bi-weekly paychecks.  You think that you can earn an…

A: Future value of an annuity is a financial concept used to determine the future value of a series of…

Q: 2. You buy a perpetuity that starts its annual payment $100 in 5 years from now. The EAR is 5%. a.…

A: A perpetuity is a series of equal cash flows which are never-ending ie: they go on forever. The…

Q: 1. Calculate the future value of $500 deposited today at a fixed rate of interest equal to 3.5% per…

A: As per the honor code of Bartleby we are bound to give the answer of first three sub part, please…

Q: A. A man having a debt of ₱2000.00 agrees to pay it at the end of 7 years. At due, he must pay a sum…

A: because you have posted multiple questions, we will answer the first question only, for the remaning…

Q: What is the future value in 4 years of €1,000 invested in an account with a stated annual interest…

A: Amount Invested is 1,000 Time period is 4 years Interest rate is 10% To Find: Future Value…

Q: iii) How much would an investor pay now (beginning of the month) for an annuity, which pays £1,500…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: How much is accumulated in each of the savings plans over two years? a. Deposit €1100 today at 15…

A: Given: Particulars 15% 12% Deposit € 1,100 € 700 Years 2 2

Q: You will receive an inheritance of 116034 in 10 years.  If the interest rate is 3.8%, how much is it…

A: Time value of money is one of the important concept in finance. It says that a dollar amount…

Q: If you invest €1,000 in a savings account that pays 4 per cent every year, how long would it take…

A: Present Value = pv = €1000Interest rate = r = 4%Future Value = fv = 1000 * 3 = €3000

Q: 4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in…

A: First we need to find the future value of 1000 riyals deposits in year 2023. Then we need to find…

Q: Suppose a lottery payout is $100,000 per year for the next ten years. If the annual interest rate is…

A: Money worth today is the present value of cash flow from the prize based on the time value of money.

Q: Mr. Lucky just won the lottery. He has a choice of $1,000,000 today or a $50,000 semi-annual payment…

A: The concept of time value of money will be used here.Amount today is the present value and…

Q: you deposit money today in an account that pays 13.5% annual interest, how long will it take to…

A: Future value = Present value x (1+i)^twherePresent value = amount deposited today = $1…

Q: what is the present value

A: The time value of money means that the amount of money received in the present period will have…

Q: You have Just won the lottery and will receive $490,000 in one year. You will receive payments for…

A: To calculate the present value we will use the below formula   Present value =…

Q: What's the present value, when interest rates are 8.5 percent, of a $195 payment made every year…

A: Calculation of present value:- Present value is $ 2,294.12   EXPLANATION:- Annual payment(given)…

Q: You are paid £3,500 annually for 8 years, with the first payment due in one year and the last…

A: Present value is the current worth of a future payment or stream of payments, taking into account…

Q: You have just won a $1 million lottery.  This new lottery, however, will pay out the award 60 years…

A: Given: Future value = $1000000 Number of years = 60 Interest rate = 16% = 0.16

Q: Everything is the same as in Question 5, but the annuity you buy has COLA's of 2% per annum. (That…

A: To determine the initial value of the income you receive from the annuity with a cost-of-living…

Q: Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5.1% interest. How…

A: Future value required (FV) = $400,000 Interest rate = 5.1% Monthly interest rate (r) = 5.1%/12 =…

Q: 4. You plan to borrow $5001.00 now and repay it in 25 years as equal annual payments that will be…

A:

Q: You own a hotel that you will receive EURO. 150,000 in rental income for next year. The rent will be…

A: Solution:- When an equal amount is receivable each period with a constant growth rate over a number…

Q: You just won a $625,000 lottery prize!  You will receive $25,000 per year for the next 25 years,…

A: Using present value of annuity due formulae, PV of annuity due = PMT * [1-(1/(1+r)^n)/r] * (1+r)

Q: payments with the first payment being made at the end of this year. If the payments are to grow by…

A: This is present value of growing of annuity problem can be solved using formula.Loan…

Q: Suppose you won the lottery that will payout over 20 years. The 1st payment you receive will be…

A: given time = 20 first payment = $150000

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

A: Present value defines the current value of an asset that will be present at sone futrue date…

Q: Suppose you will receive OMR 1 each year for the 3 coming year the Interest Rate is 10% Question:…

A: Calculation of future value annuity: Answer: Future value annuity is OMR 3.31

Q: You will receive a cash payment of $7072 in 7 years. If the relevant interest rate is 19.89%, how…

A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…