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?
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A: Computation:
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A: GIVEN, A= $500 R= 1.7% M = 12 N =2
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A: The present value is the present worth of the amount that will be paid or received at future.
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A: GIVEN, CASH = $5381214 OR A= $700000 N =10 R=5%
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A: Present value of $16,000: Present value: $376,205.407024
Q: You just purchased an annuity that will pay you $24,000 a year for 25 years, starting today. What…
A: Annual payment (P) = $ 24000 Number of annual payments (n) = 25 Interest rate (r) = 8.5%
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Q: Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per…
A: Since you have not mentioned the specific question we will just answer the first question in case…
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A: The present value of the growing annuity is the current worth of a cash flow series growing at a…
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A: Annuity Amount = $1,000 Years(n) = 10 Interest Rate(r) = 12% Present Value of Annuity =…
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A: Future value of an annuity: It represents the future worth of the annual cash flows made…
Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…
A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%
Q: Suppose you just won the state lottery, and you have a choice between receiving $2,455,000 today or…
A: Given, Today's value (PV) = $2,455,000 Annuity years (Nper) = 20 Yearly payment (Pmt) = $230,000
Q: Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much…
A: Annual payment (P) = $14,000 Interest rate (r) = 6.5% Period (n) = 5 Years
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A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: If you buy an ordinary annuity that will pay you 4,000 a year for the next 20 years with an annual…
A: Annual payment (P) = 4000 Number of annual payments (n) = 20 Annual interest rate (r) = 8%
Q: Suppose you just won the state lottery, and you have a choice between receiving $3,600,000 today or…
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Q: If you were to invest $50,000 from you lottery winnings today, how much will it be worth in 20 years…
A: To find the future value after some specific some time can be found out by the formula of future…
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A: Present Value of Annuity=Annuity×1-11+ratetimerate
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A: Annual Payments = $9,000 Time period = 11 years Annual interest rate = 11%
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A: Total lottary amount = $200,000 Amount required at retirement (FV) = $200,000/2 = $100,000 Interest…
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A: The present value of the growing annuity is the current worth of a cash flow series growing at a…
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A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
Q: Suppose you just won the state lottery, and you have a choice between receiving $4,500,000 today or…
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Q: You have just received notification that you have won the $3 million first prize in the Centennial…
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A: Working note:
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A: Since you have asked multiple questions, we will solve the first question for you. Please resubmit…
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A: The formula to compute present value of annuity as follows: Present value of annuity=C×1-1+r-nr
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A: In this we have to calculate future value FACTOR and future value.
You just won the lottery, which promises you $440,000 per year for the next 20 years. You receive the first payment today (hint:
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityyou have just won the lottery and will receive $460,000 in one year. you will receive payments for 21 years, and the payments will increase 4 percent per year. if the appropriate discount rate is 11 percent, what is the present value of your winnings? Please explain how to solve using the financial calculator to show and explain steps thanksYou 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?
- 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)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).You are offered an annuity that will pay $11,000 per year for 24 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 12%, what is the annuity worth to you today? $914,490.09 $1.299,707.65 $95,902.77 $1,455,672.57 $85.627.47 You are told that if you invest $10,900 per year for 12 years (all payments made at the end of each year) you will have accumulated $670,000 at the end of the period. What annual rate of return is the investment offering? 29.99% 23.63% 20.63% 26.99% 33.44%
- You are offered an annuity that will pay $4,250 per quarter for 8 years (first payment made today). If you feel that the appropriate discount rate is 12%, what is the annuity worth to you today?You buy an annuity that will pay you $24,000 a year for 25 years. What is the value of this annuity today if the discount rate is 8.5 percent?You won the lottery and will receive $800,743.61 in 35 years. Assume an interest rate of 7%. What is the value of your winnings today?
- Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6 years, at a 9% interest rate. What is the most you should pay for the annuity? USE FORMULAYour insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%. What should be the present value of this annuity? If you are given the first payment immediately starting today, what should be the worth of this annuity? Which payment mode will you accept? What will be basis of your decision under time value of money concept?Assume that Social Security promises you $40,000 per year starting when you retire 45 years from today (the first $40,000 will come 45 years from now). If your discount rate is 7%, compounded annually, and you plan to live for 15 years after retiring (so that you will get a total of 16 payments including the first one), what is the value today of Social Security´s promise?