A winner of the multi-state lotto won a one-time payout and decided to invest part of it into an annuity. If the winner invests $9,500,000.00 into a 30 year annuity that pays 3.1 %, compounded monthly and makes each month payments. What is the amount of each month payments? The payment would be $ (Round to 2 decimal places.)
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- A winner of the multi - state lotto won a one time payout and decided to invest part of it into an annuity. If the winner invests $6,700,000.00 into a 30 year annuity that pays 3.5%, compounded monthly and makes each month payments. What is the amount of each month payments? The payment would be $. (Round 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?Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $76,000 cash immediately. (2) $27,000 cash immediately and a six-year annual annuity of $8,500 beginning one year from today, or (3) a six-year annual annuity of $15,800 beginning one year from today. Assuming an interest rate of 7% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $145,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 8% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers…
- The winner of a lottery chooses to receive annual payments of $170,000 at the end of each year for 25 years. If the current interest rate is 4.2 %, find the present value (in dollars) of the payments. (Round your answer to the nearest cent. See Example 5 in this section.)Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.Give typing answer with explanation and conclusion to all parts If $387674 is used to purchase an annuity earning 5.5% compounded monthly and paying $3102 at the end of each month, what will be the term of the annuity? Include the final, smaller annuity payment in the total. (Just state total months as a number, not years and months) What is N? What is I/Y? What is C/Y? What is P/Y? What is PV? What is PMT? What is FV?
- A lottery offers a $1,000,000 prize to be paid in 29 equal annual installments of $20,000 with a 30th final payment of $420,000. What is the total value of this annuity after the final payment if the current annual rate is 2%? (Round your answer to the nearest cent. Assume the final payment is made after the last installment payment, but before the balance of the account is compounded again.)$What is the monthly payment for a home costing $475,000 with a 20% down payment and the balance financed for 30 years at 6.5%? (a) State the type. A. present valueB. future value C.ordinary annuityD.amortizationEsinking fund (b) Answer the question. (Round your answer to the nearest cent.)Present value of an annuity On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal installments of $7,250,000 over six years. The payments will be made on December 31 of each year, beginning on December 31 of this year. The current interest rate is 5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Present value of an annuity DATA Sum of prize $43,500,000 Annual payment $7,250,000 Number of years 6 Interest rate 5.0% Date of win January 1 Date of payments December 31 of each year Using formulas and cell references, perform the required analysis, and input your answer into the Amount column. Transfer the numeric result for the green entry cell (B14) into the appropriate field in CNOWv2 for grading. Amount Formula PV of annual payments
- Present value of an annuity On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal installments of $7,250,000 over six years. The payments will be made on December 31 of each year, beginning on December 31 of this year. The current interest rate is 5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the present value of your winnings. Round your answer to the nearest dollar.Present value of an annuity On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal installments of $7,250,000 over six years. The payments will be made on December 31 of each year, beginning on December 31 of this year. The current interest rate is 5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the present value of your winnings. Round your answer to the nearest dollar. $ fill in the blank 2Rex Corporation accepted a $7,000, 4%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 5%. (Use Days in a year table.) a. What is the note's maturity value? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Maturity value b. What is the discount period? Discount period days c. What is the bank discount? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Bank discount C