As the winner of a raffle, you have won a guaranteed £100 every year for ever, starting today. If you use a discount rate of 8%, what is the present value of this prize? A. £800.00 B. £1150.00 C. £1157.41 D. £1250.00 E. £1350.00

Q: For future value $20,000, 18 years at 6% compounded interest continuously, determine the questions…

A: Present value refers to the current value of the amount that is expected by an investor to receive…

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

A: Solution: When an amount is received each period at a constant growth rate per period, this is known…

Q: You expect to receive $5,000 in 25 years. How much is it worth today if the discount rate is 5.5%?…

A: Present value refers to the current value of an asset that will be present at some future date which…

Q: Suppose you just won the state lottery, and you have a choice between receiving $3,550,000 today or…

A: Choice-1 Amount to receive today is $3,550,000 Choice -2 Annuity amount is $250,000 Time period is…

Q: What is the value today of $1,200 per year, at a discount rate of 9 percent, if the first payment is…

A: The concept of time value of money will be used here. Value today refers to present value. The cash…

Q: hat is the present value of $3,000 received a. 10 years from today if the interest rate is 4%…

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

Q: 3. Discount P60,000 due in 40 years at 12% compounded quarterly. 4. Find the present value of…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: You have a choice of four increasing Annuity A $300 5% 12 Payment Annual Rate Interest Periods Per…

A: To Find: Which annuity reach FV of $100,000 earlier

Q: You won the lottery. You may receive a one-time cash payout today or receive $340,000 in 13 years.…

A: Future Value = fv = $340,000Time = t = 13Discount Rate = r = 12%

Q: If you put up 23,000 today in exchange for a 6 percent, 10-year annuity, what will the annual cash…

A: Invested Amount = $ 23000Interest Rate = 6% Compounded AnnuallyPeriod = 10 YearsAnnual Cash Flow = ?

Q: The $9.4M lottery that you just won actually pays ($9.4M divided by 40) per year for 40 years. If…

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

Q: You are offered the right to receive $2,000 per year forever, starting in one year. If your discount…

A: Annuity that offered to pay some amount forever is called perpetuity. The worth of offer would be…

Q: Listen How much will you have in 6 years if you save $3,600 at the end of every six months? Money…

A: The concept of money's time value reveals that any sum of money is worth more currently as compared…

Q: Present Value Computation You will receive $4,500 in 3 years. What is the present value if you can…

A: Present value = Amount*PV$1(n=3, i=8%)

Q: If you put up $30,000 today in exchange for a 6.50 percent, 15-year annuity, what will the annual…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: 1 You deposit P10 000 into a 9% account today . At the end of two years , you will deposit P30 000 .…

A: Future Value The future value is the amount that will be received at the end of a certain period.…

Q: a. If the first payment is made four years from now, what is this grand prize really worth today?…

A: Present Value is the value of money in today at zero period for all the payments which is received…

Q: You are offered the right to receive $1,000 per year forever, starting in one year. If your discount…

A: Perpetuity is constant series of periodic payments for an infinite time. The present value of a…

Q: Find the present and future value of $1000 received every month end for 20 years if the interest…

A: Present Value represents the current value of the investment whereas future value represents the…

Q: Just suppose your won a lottery of $1,000,000 and you have the option to receive it today or in 2…

A: Step 1 The value of a sum of money today is known as its present value.

Q: 23. A person wins Euro Dreams, a lottery that pays 20.000 € per month for 30 years. If the current…

A: Monthly payments = 20,000€Years =30Annual rate =6%To find the present value of these earnings.

Q: QUESTION 10 Suppose you deposit $5,000 a year at the end of each year for 10 years. You earn 4.2%…

A: Future value is the value of asset or investment, made for the number of period at equal interval at…

Q: Congratulations you just won the Colorado Lotto!!! The cash flows below are related to the yearly…

A: Data given: Year               Annuity 1-10              200 11-15            300 16-20…

Q: You purchase a home for $207,000 that you expect to appreciate 8% in value on an annual basis. How…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: he $37.7 million lottery payment that you just won actually pays $2.9 million per year for 13 years.…

A: Present value is current value of future cash flow discounted at an appropriate discount rate; in…

Q: Acme Insurance is offering you a perpetuity that will pay you and your heirs $150,000 per year. If…

A: A perpetuity is a type of financial instrument or investment that provides a fixed stream of cash…

Q: What is the present value of £100 to be received every year forever, starting next year if the…

A: Cash inflow in year 1 = £100 Interest rate = 20%

Q: An individual wins a lottery prize of £3,000 payable every 6 months in arrears for 10 years. What is…

A: Present value is the current value of a future sum of money or stream of cash flows given a…

Q: The $55.0 million lottery payment that you have just won actually pays $2.2 million per year for 25…

A: The present value represents the current worth of future cash flows, accounting for the time value…

Q: What is the future value of $6000 earning 18% interest, compounded monthly, for 4 years? (Round your…

A: Given information, Present value (PV) = $6,000Annual interest rate (r) = 18% or 0.18Time (t) = 4…

Q: Suppose you won a lottery 600000 interest of 0.05 percent, they offered you many choices the first…

A: The question gives the following information: Lottery price=600,000Interest rate=0.05%

Q: You have the opportunity to purchase a perpetuity which pays $5,000 annually forever. If you require…

A: A perpetuity is a stream of fixed periodic cash flows ( annuity) of infinite duration

Q: I HOPE every student answers this very simple question correctly. Using an interest rate of 4% per…

A: The concept of time value of money will be used here. As per the concept of time value of money any…

Q: You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate…

A: The correct option is  e. 18050

Q: How much should you pay for the promise of $2,000 in 5 years? Assume you would like to earn 4.5% per…

A: Formula: Present value = Future value / (1+rate)^years