a. If she choose to receive the present value of the prize now, how much will she receive? b.  If she choose to receive the value 3 years from now, how much will she receive? c. Which of the options will give her higher amount?

Q: Gail has won a lottery that pays her $100,000 at the end of this year and increases by 15 percent…

A: We are given the following information -Lottery payment$100,000Increase in lottery payment15%No. of…

Q: Madison is thinking of buying an investment from PEP. If she purchases the investment, Madison will…

A: The present value of the annuity due is the current worth of a cash flow series received/paid at the…

Q: Q) Susan is 22 years old and today she opened a savings account that offers an interest rate of 12%…

A:

Q: Solve it correctly please.

A: A savings certificate is a long-term savings account with a fixed interest rate and a defined…

Q: Sharie is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Marian Plunket owns her own business and is considering an investment. If she undertakes the…

A: NPV is the tool used by investors responsible for evaluating investment proposals where net benefits…

Q: Marian Plunket owns her own business and is considering an investment. If she undertakes the…

A: Initial investment = $1,410Cash inflow = $5,640Additional investment = $7,050Interest rate =…

Q: Gail Trevino expects to receive a $500,000 cash benefit when she retires five years from today. Ms.…

A: This question relates to the application of time value of money. We will compute the present value…

Q: (a) On June 1, 2021, Kimberly Lawrence purchases lakefront property from her neighbor, Josh…

A: Whenever business entity acquires any asset on deferred payment basis, it records this asset at the…

Q: Marian Plunket owns her own business and is considering an investment. If she undertakes the…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: Suppose that the US price index is 100.0 in 1985 and 216.4 in 2015 (30 years). What is the average…

A: Here, US Price Index in 1985 is 100 US Price Index in 2015 is 216.4 Time Period is 30 years

Q: Compute the value for each of the following independent situations. Note: Use Excel or a financial…

A: Present value is the current value of a sum of money to be received or paid in the future,…

Q: Tanya wants to be able to withdraw $7000 at the end of 7 years and $9000 at the end of 8 years. If…

A: Present value is the value of future cashflow discounted to present date at specified rate. formula:…

Q: Jane won the $70 million lottery. She is to receive $1 million a year for the next 50 years…

A: The present value of any cash flow/series of cash flows can be determined by following a process…

Q: determine if Elora would be able to buy the land

A: First we need to determine the effective annual interest rate using the formula below:

Q: Fatema wants to invest an amount of OMR.  2000 every year to go on vacations with her husband at the…

A: Annual Amount invested =OMR 2000 Years (n) = 5 Interest Rate(r1) = 7.85% = 0.0785 Interest rate(r2)…

Q: Susanna wants to purchase a house costing $212,286. She plans to put $51,874 toward a down payment…

A: Cost of house = $ 212,286 Down payment = $ 51,874 Mortgage amount (PV) = 212286-51874 = $ 160412…

Q: Megan is applying for a scholarship currently valued at $4,000 at the end of first year. If she is…

A: Data given: Value of scholarship at the end of first year= $4000 Rate of inflation=2%

Q: Janet receives a $ 10,000 life insurance benefit. If she uses the proceeds to buy an n-year annuity…

A: Given information,Life insurance benefit: Annual payout n-year annuity: Annual annuity 2 n-year…

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

A: Annual payment (C) = $6,000,000 Interest rate (r) = 0.086 Number of payments (n) = 12 Future value…

Q: Marian Plunket owns her own business and is considering an investment. If she undertakes the…

A: Net present value refers to the method of capital budgeting used for estimating the viability of the…

Q: marian plunket owners her own business and is considering an investment. If she undertakes the…

A: The difference between the present value of all cash inflows and the present value of all necessary…

Q: Elizabeth has $17000 to invest. She requires $34000 for a down payment for a house. If she is able…

A: To determine the number of years it will take for Elizabeth to accumulate the desired balance, we…

Q: Carrie Tune will receive $30,800 for the next 10 years as a payment for a new song she has written.…

A: Payment = p = $30,800Time = t = 10 YearsDiscount Rate = r = 16%

Q: Jose wants to cash in his winning lottery ticket. He can either receive eight, $6,000 annual…

A: Solution:-When an equal amount is received each period at beginning of the period, it is known as…

Q: 4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent…

A: Introduction: The present value of annuity due refers to the current value of a series of future…

Q: Ahmed Al Khatib has just won the lottery and must choose among three award options: lump sum of $61…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Jessie is considering purchasing a new car for $30,000. The dealer is offering 2 options on the…

A: For monthly payment calculation in option 1 , we need to use the following formula CF =PV*r1-1(1+r)n…

Q: Marian Plunket owns her own business and is considering an investment. If she undertakes the…

A: The objective of the question is to calculate the Net Present Value (NPV) of an investment…

Q: Peter won a lottery and must decide among the following options: a. $260 at the beginning of every…

A: Present value represents the current value of the future stream of cash flow of investment.

Q: How much are the 2 million dollars received annually over the course of 25 years worth in terms of…

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: You have won the lottery, and you must choose between three award options. You can select one of the…

A: Formula required  Present value FACTOR =1-(1+r)^-n/r  Present value =Future value/(1+r)n r=interest…

Q: Mr. X is going to retire soon. His employer gives him two options; a. An annual pension of Rs. 8,000…

A: The present value function or concept can be used to determine the present value of a future sum or…