Joe Grant won the state lottery for $20M. He will receive $600,000 per year after taxes for 20 years. If his expected annual interest rate is 8.75%, what is the present worth of Joe's winnings?

Q: A deposit of $1500 is made into a fund on March 28. The fund earns simple interest at 5%. On July…

A: Calculate the days difference between the dates

Q: wery year you pay your neighbor $150 to clean the gutters at your house. You saw ad on late night TV…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: of 4 years? %24

A: Answer

Q: What is the future value of $100 next year. If discount rate is 5% annually

A: Present value = $100  Discount rate = 5%  Future value = PV * (1+i)

Q: "You are interested in buying a piece of real property that could be worth $313,000 in 15 years.…

A: Here, we calculate the given as follow;

Q: You want $1,000,000 in the bank when you retire in 35 years. How much should you deposit each year?…

A: We want $1,000,000 in the bank at the time of retirement. Interest rate is 10% Here we have to…

Q: Find the present value of an annuity of $2,000 payable at the end of each year for 10 years, if the…

A: Answer is given:

Q: You are going to get %10,000,000 in 45 years' time. What is the value of that money today assuming…

A: Present value can be calculated by using the following formula.

Q: 4A Find the value of 'C’ in the figure below. Take the interest rate as 15%. C-? 10 15 23 Years…

A: Given: The interest rate is = 15% Years = 23 To Find: The value of C:

Q: 1. Find the present value in year 1 and the future value in year 10 for the following cash flow (i=…

A: The definition of present value states that a dollar sum today is worth more than a dollar amount in…

Q: 3. Lisa plans to retire on her 61st birthday. On her 22nd birthday, she will start saving PA per…

A: The future value of an annuity is the value of a gathering of repeating installments at a specific…

Q: 1.Calculate the present value of a growing annuity given the following information: annual cash…

A: Present value of a growing annuity is given as: P = PMT * (1-(1+g)n*(1+i)-n)i-gPV : Present valuePMT…

Q: A grocery store sells for $181,500 and a 20% down payment is made. A 35-year mortgage at 6% is…

A: A grocery store sells for $181,500 and a 20% down payment is made. A 35-year mortgage at 6% is…

Q: 10. Determine the accumulated amount using exact simple interest on $1,000 for the period from…

A: Given that, Principal (P): $1000 Rate (R): 15% Time (t): 312 days

Q: An investment of P2880 is made at the beginning of each month for 9 years and 4 months. How much…

A: We have given that the investment is made at the beginning of each month and A =₱2880 Length of…

Q: An investment of $3523 is made at the beginning of each month for 5 years and 10 months. How much…

A: Total months(n) =years*12+months=5*12+10=70 interest rate per month (r)=1% Amount invested per month…

Q: An industrial juicier costs$45,000. It will be used for five years and then sold to market…

A: Net yearly savings is the amount of money that is obtained after deducting annual expenses from…

Q: Present value is the value in today's dollars of funds to be paid or received in the future. If the…

A: present value, also known as present discounted value, is the value of an expected income stream…

Q: You deposit $1,000 in a bank account that pays a fixed interest rate of 5% per year and it compounds…

A: Given Present value P=$1000 Rate of interest =5% per year compounded annually We need to find the…

Q: ind the monthly house payment necessary to amortize the following loan. order to purchase a home, a…

A: Future value is the value of a resource at a particular date. It estimates the nominal future amount…

Q: company buys a machine for $17,000, which it agrees to pay for in six equal annual payments,…

A: Interest rate is the amount charged over and above the principal amount by the lender from the…

Q: Calculate the net present value in year 0, of the next series of payments. Suppose that i = 10% per…

A: The difference between the present worth of inflows and present worth of outflows is said to be net…

Q: Mr. Prudent has purchased a discount bond, that matures in 7 years with a payout of exactly $14,440.…

A: A bond is a form of asset in which the issuer owes the holder a debt and is required to return the…

Q: Stan Slickum has a used car that can be bought for $8,700 cash or for a $2,000 down payment and $780…

A: Given the price = 8700 Down payment = 2000 Effective price = 8700 - 2000 = 6700

Q: A state lottery gives a winner the choice of receiving the winning amount in equal monthly payments…

A: Present Value Of Annuity: An annuity is a regular cash inflow that happens at the end of each period…

Q: You wish to purchase a property for $400.000. You intend to make a 20% have two mortgage choices.…

A: The issue you raised has to do with mortgage options and personal finance. under particular, it…

Q: uestion 11 Find the monthly house payment necessary to amortize the following loan. In order to…

A: Loan amount is compounded monthly and number of months in a year is 12. Monthly interest rate is…

Q: Jim's retirement account in a company currently totals $416,384. What perpetual income can Tom and…

A: To begin receiving income as soon as a policy has been established, the annuity contract is called…

Q: An investment wil pay you $25,400 in 20 years. The steted nterest rate is 13% (APR). Finterest in…

A: Present value, also known as present discounted value, is the value of an expected income stream…

Q: Leon and Heidi decided to invest $3,000 annually for only the first eight years of their marriage.…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: 2. A farmer must purchase a tractor using a loan of $20,000. The bank has offered the following…

A: Loan Amount = 20,000 r = 8% MARR = 15%

Q: In order to go to college, Lucy borrowed money from Happy 3 years ago. She borrowed a sum of…

A: Amount borrowed P = 50,000           Interest rate R = 5%                      Time  T = 8 years…

Q: Assume I won 8 million dollars in a lottery. I could take my winnings in installments of 2 million…

A: Assume I won 8 million dollars in a lottery. I could take my winnings in installments of 2 million…

Q: 8. What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year?

A: Future value (FV) is the value of an present asset at a future date in view of an assumed rate of…

Q: You buy a share of stock that pays $5 in dividends for the next 5 years and nothing after that. If…

A: The formula for the present value is:  P = FV(1 +R)tP: Present ValueFV: Future ValueR: Rate of…

Q: Suppose you deposited $200 at the end of every year for seven years in an account that earned 6%…

A: Compound interest formula: A =P (1+r)t

Q: earns an annual interest rate of 2.75%.

A:

Q: 1. How much must you deposit each year to have $20,000 at the end of 15 years with money worth 7%?

A: Future value = 20000 $ Time = 15 years Interest rate = 7 %

Q: Find the monthly house payment necessary to amortize the following loan. In order to purchase a…

A: Given informtaion: A family borrows $70,000 at 12% for 15 years in order to purchase a home.  We…

Q: 1. Mary buys a 20 year annuity immediate for $100,000 subject to 6% effective annual interest rate.…

A:

Q: You would like to have $800,000 in your retirement account in 40 years. You assume your retirement…

A: When individuals who have earned incomes have a separate account that they wish to save for the…