If you were to invest $50,000 from you lottery winnings today, how much will it be worth in 20 years assuming a 7% rate of return?

Q: account

A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…

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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…

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Q: An investor has just won the lottery and will receive $200,000 per year at the end of each of the…

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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…

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Q: You just won the $78 million Ultimate Lotto jackpot. Your winnings will be paid as $2,600,000 per…

A: Given information: Winnings will be paid as $2,600,000 per year Number of years paid is 30, Interest…

Q: You will receive $4,000 three years from now. The discount rate is 10 percent.  a) What is the…

A: In the given question we need to compute the value of investment after two years and one year from…

Q: Suppose you win the lottery and you're thinking about whether to take the lump sum or be paid the…

A: First payment: $8 million (immediate payment at t=0)Discount rate: 7%Number of payments: 30Growth…

Q: You are given $200 each year starting next year and finishing in 15 years (t = 15). If the discount…

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Q: You can receive lottery winnings of either $800,000 now or $100,000 per year for the next 10 years.…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

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: 1.1) You have just won the lottery and will receive $2.5 million in one year. You will receive…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: Should you take the $1,600,000 now, or wait to get the full $2,000,000 in 10 years? Why or why not?…

A: Future value of money is the amount of interest accumulated over the period of time of deposit and…

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: Choose the option to correctly complete the following sentence. Today is January 1, 2020. On the…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: How much you have to invest each year to reach the goal (assume end of year investments and an…

A: The retirement corpus is 750,000. To calculate the end of year payments, the PMT function in excel…

Q: Present Value You will require $700 in 5 years. If you earn 5% interst on your funds, how much will…

A: The computation is as follows: Hence the present value is $548.47.

Q: Suppose you want to have S0.5 million saved by the time you reach age 30, and suppose you are 20…

A: Future value of the investment (FV) = $500000 Number of years of investment (n) = 10 Rate of…

Q: You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest…

A: One of the useful concept used in finance is time value of money. It says that a dollar amount…

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

A: Payment Today = p0 = $1 millionNumber of Payment = 10Year 1 Payment = p1 = $1.51 millionYear 2…

Q: 5. In eighteen years, you require an annuity stream of income that will pay out $100,000 per year…

A: An annuity refers to a fixed stream of payments. In this case the annuity amount is $100,000 per…

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: a) If you invest $100 every year for the next 20 years starting one year from today and you earn…

A: The Future Value of the Annuity refers to the sum value of all the payments which is occurred…

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: You just won the lottery! As your prize you will receive $2,500 a month for 10 years. If you can…

A: To calculate the prize worth today we will use the below formula   Prize worth today =…

Q: You are offered $90000 today or $380000 in 10 years. Assuming that you can earn 15 percent on your…

A: Step 1: Given that, which one should you choose for the offer value today = $90000 or Present value…

Q: You have $12044 to invest and want to save up $26452.  You hope to earn a return of 9.5%.  How long…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Present-value comparison) You are offered ​$100,000 today or ​$340,000 in 15 years. Assuming that…

A: We need to calculate the present value of both the alternative in order to understand which…

Q: How much would you accept in a lump sum today, in place of a lottery payment of $35,000 at the end…

A: Formula:

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A: Data given: FV= $500,000 n=9 years r=rate=13%   Required:: Amount willing to pay  for the…

Q: You have received $200,000 from the PowerBall Lottery and want to have half that amount available…

A: Total lottary amount = $200,000 Amount required at retirement (FV) = $200,000/2 = $100,000 Interest…

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

A: To calculate the future value (FV) when the winner receives $6 million at the beginning of each of…

Q: You just won the lottery! As your prize, you will receive $2,200 a month for 90 months. If you can…

A: Compound = Monthly = 12Payment = p = $2200Time = t = 90 Interest Rate = t = 7 / 12 %

Q: An investor plans to invest $500 a year and expects to get a 10.5% return. If the investor makes…

A: Formula to be used,   PV = P[1-(1+r)^-n]/r where, PV=Present value P=Principal amount r=Rate of…

Q: You would like to have $19,928 in 12 years. If the rate is 8.45%, how much do you have to invest…

A: Future value required (FV) = $19928 Interest rate (r) = 8.45% Number of annual deposits (n) = 12

Q: ou have just won the lottery and will receive $460,000 in one year. you will receive payments for 21…

A: Present value of growing annuity With annuity (PMT), periodic interest rate (r), growth (g) and…

Q: 1. How much would $10,000 due in 100 years be worth today if the discount rate were 9%? 2. You have…

A: 1. Let's break down the calculation step by step.a. Understand the Present Value Formula: The…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.