You just won a $625,000 lottery prize! You will receive $25,000 per year for the next 25 years, starting today, a total of $625,000. If the current interest rate is 1.9% compounded annually, what is the cash value of this prize?
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You just won a $625,000 lottery prize! You will receive $25,000 per year for the next 25 years, starting today, a total of $625,000. If the current interest rate is 1.9% compounded annually, what is the cash value of this prize?
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- You just won the lottery, which promises you $440,000 per year for the next 20 years. You receive the first payment today (hint: annuity due). If your discount rate is 9.00%, what is the present value of your winnings?Congratulations, you just won the lottery! As the winner, you will receive payments of $2 million at the beginning of every year over the next 10years. The first payment will be paid out already today. What is the present value of your lottery winnings? Assume an interest rate of 5% per year. Answer in millions of dollars with 2 decimals (for example, if your answer is 12, 160,000 enter 12.16).Suppose a lottery payout is $100,000 per year for the next ten years. If the annual interest rate is 5%, how much is this lottery prize worth today?
- You have just won the lottery and will receive $550,000 in one year. You will receive payments for 23 years, and the payments will increase 3 percent per year. If the appropriate discount rate is 10 percent, what is the present value of your winnings?The prize in last week’s lottery was estimated to be worth $90 million. If you were lucky enough to win, the payment will be $3.6 million per year over the next 25 years. Assume that the first installment is received immediately. If interest rates are 6%, what is the present value of the prize? If interest rates are 6%, what is the future value after 25 years? How would your answers change if the payments were received at the end of each year? How would your answers change if the interest rate was higher?You have just won a lottery that promises an annual payment of $120000 beginning immediately. You will receive a total of 15 payments. If you can invest the cash flow in an investment that is paying 8% annually, what is the present value of this annuity?
- A $1,000,000 lottery prize pays $50,000 per year for the next 20 years. If the current rate of return is 5.75%, what is the present value of this prize? (Assume the lottery pays out as an ordinary annuity. Round your answer to the nearest cent.)You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $660,000 per year. Thus, in one year, you receive $1.66 million. In two years you get $2.32 million, and so on. If the appropriate interest rate is 7.6 percent, what is the value of your winnings today?Congratulations! You have just won a $40 million lottery and have elected to receive $2 million per year for 20 years. Assume a 4% interest rate is used to evaluate the annuity and that you receive each payment at the beginning of each year. a. What is the present value of the lottery? b. How much interest is earned on the percent value to make $2 million per-year payment?
- You can receive lottery winnings of either $800,000 now or $100,000 per year for the next 10 years. If your interest rate is 5% per year, which do you prefer?You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $450,000 per year. Thus, in one year, you can receive $1.45 million. In two years, you get $1.9 million, and so on. If the appropriate interest rate is 6.2 percent, what is the value of your winnings today? (Please also provide financial calculator calculations if possible)You have received $200,000 from the PowerBall Lottery and want to have half that amount available for your retirement in 30 years. If you can earn 6% interest per year (compounded monthly) on this investment, how much of the lottery winnings must you invest?