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
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A lottery winner will receive $1 million at the end of each of the next ten years. What is the
is 8.5% per year?
A. $14.84 million
B. $19.95 million
C. $18.95 million
D. $13.84 million
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- 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 millionHow much would you accept in a lump sum today, in place of a lottery payment of $35,000 at the end of the next 20 years ($700,000 in total), assuming you could invest it at a 6 percent rate?Assume you have just found out you are entitled to receive $102,000 in 19 years. If the interest rate is 18 percent, what should you be willing to take today in exchange for the future payment? (Enter your answer as a positive number rounded to 2 decimal places.)
- 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 $K ces Mary is going to receive a 32-year annuity of $9,700 per year. Nancy is going to receive a perpetuity of $9,700 per year. If the appropriate interest rate is 10 percent, how much more is Nancy's cash flow worth? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present valueSuppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or $270,000 a year for 18 years, with the first payment starting one year from today. What annual interest rate does the second choice provide? 6.75% 7.49% 7.89% 6.28%
- What is the value today of receiving $2,506.00 per year forever? Assume the first payment is made 10.00 years from today and the discount rate is 12.00 % .. Lottery Winnings The winner of a “million dollar”lottery is to receive $50,000 plus $50,000 at theend of each year for 19 years or the present valueof this annuity in cash. How much cash wouldshe receive if money is worth 8%, compoundedannually?Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9 percent. What is the future value if the payments are made on the last day of the year? What if the payments are made on the first day of the year? a) $82,756.68; $90,204.78 b) $90,204.78; $82,756.68 c) $49,345.10; $53,786.16 d) $53,786.16; $49,345.10
- Iris expects to receive $1,000 at the end of each of the next three years. She will deposit these payments into an account that pays 10%, compounded semi-annually. What will be the future value of these payments, that is, the value at the end of the third year? a. $3,318.01 b. $1,340.10 c. $1,157.63 d. $1,331.00answer the following the topic is logical operation 1.Clarence has already accumulated 250,000 pesos in his retirement plan. If she contributes 8,000 pesos at the end of every quarter for the next eight years, and 7,000 pesos per quarter for the next 7 years, what amount will he have in his retirement plan at the end of 15 years? Assume his plan will earn 6.8% compounded quarterly.2. Calculate the future value of an ordinary annuity consisting of bimonthly payments of 7,430 pesos for 7 years if the rate of interest was 12.6% compounded bimonthly for the three years and will be 10.8% compounded bimonthly for the last four years.Congratulations! You have just won a $40 million lottery and have electedto receive $2 million per year for 20 years. Assume that a 4 percent interestrate is used to evaluate the annuity and that you receive each payment atthe beginning of the year.a. What is the present value of the lottery?b. How much interest is earned on the present value to make the $2 millionper-year payment?