Present Value of an Annuity On January 1, you win $2,200,000 in the state lottery. The $2,200,000 prize will be paid in equal installments of $220,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. $
Q: On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal…
A: Present value of winnings = Annual installments x Present value factor (5%, 6 years)
Q: Present Value of an Annuity On January 1, you win $3,440,000 in the state lottery. The $3,440,000…
A: Definition: Present Value: The value of today’s amount to be paid or received in the future at a…
Q: January 1, you win $2,500,000 in the state lottery. The $2,500,000 prize will be paid in equal…
A: Present Value = Annual Payment * PVIFA(10 years, 6%)
Q: On January 1, you win $3,440,000 in the state lottery. The $3,440,000 prize will be paid in equal…
A: Present value of winnings = Annual installments amounts x Present value factor (5%, 8 years)
Q: On January 1, you win $800,000 in the state lottery. The $800,000 prize will be paid in equal…
A: INTRODUCTION Formula: Net present value. 1/(1+r)^n NPV of 1 year. 1/(1+0.05)^1 =0.95238…
Q: On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal…
A: Present value: Present value means the discounted value of a future sum of money at a given…
Q: Present Value of an Annuity On January 1, you win $4,600,000 in the state lottery. The $4,600,000…
A: Present value is the current value of a future amount that is to be received or paid out. Future…
Q: Present value of an annuity On January 1, you win $43,500,000 in the state lottery. The $43,500,000…
A: Present value of winnings is the product of Annual installments and Present value annuity factor .…
Q: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity eaming 9.52%…
A: Using excel
Q: On January 1 you win $1,900,000 in the state lottery. The $1,900,000 prize will be paid in equal…
A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…
Q: Present Value of an Annuity On January 1, you win $1,100,000 in the state lottery. The $1,100,000…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…
A: The PMT is the equal pay that has to paid or received monthly or yearly.
Q: Find the future value of an annuity due
A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…
Q: A lottery pays the winner $1 million in 20 equal annual payments of $50,000. The first payment will…
A: Working note:
Q: Find the future value of an annuity due
A: Future value i.e. FV of an annuity due shows the worth of total amount of regular payments made at…
Q: Present Value of an Annuity On January 1, you win $1,600,000 in the state lottery. The $1,600,000…
A: Present Value of an Annuity The amount of money you'd have to invest right now to equal the sum of…
Q: An annuity-pays 18,000 per year for five years. The annual interest rate is 6%. Find the present…
A: i) Determine the present value of the annuity using the Excel PV function with the following inputs:…
Q: Determine the present value of an annuity for 15 years if the interest rate is 8.8% per annum…
A: An annuity is a constant stream of cash flows. In this case the cash flow amount is $72.50 in each…
Q: On January 1, you win $4,800,000 in the state lottery. The $4,800,000 prize will be paid in equal…
A: Present value of winnings = Annual installments x Present value factor (6%, 10 years)
Q: On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal…
A: Present value: The value of today’s amount expected to be paid or received in the future at a…
Q: An annuity pays $300 each on January 1 in the Year 2025, 2030, 2035, 2040 and 2045. The annual…
A: The sum of all succeeding, equal payments or deposits made at some point in the future represents…
Q: On January 1, you win $2,500,000 in the state lottery. The $2,500,000 prize will be paid in equal…
A: The Present value of lottery won and get in installments for next 10 year of $ 250000 , would be…
Q: On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal…
A: Formula: Present value amount = Yearly amount x PV factor Multiplying yearly amount with PV factor…
Q: Determine the present value of your winnings.
A: In the given case, Annual cashflows = 7250000 Interest rate = 5% Time period = 6…
Q: Present Value of an Annuity On January 1, you win $60,000,000 in the state lottery. The $60,000,000…
A: Present Value of an Annuity The present value of an annuity refers to the current value of future…
Q: A 30-year annuity is arranged to pay off a loan taken out today at a 5% annual effective interest…
A:
Q: Present Value of an Annuity On January 1, you win $4,800,000 in the state lottery. The $4,800,000…
A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…
Q: Present value of an annuityOn January 1 you win $50,000,000 in the state lottery. The $50,000,000…
A: The present value of an annuity represents the present worth of the money to be received in the…
Q: Calculate the future value of an annuity of $ 10,440 invested every year at 10.9% compounded…
A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: Present value of an annuity On January 1. you win $46,000,000 in the state lottery. The 545,000,000…
A: Here, Sum of Prize is $46,000,000 Annual Payments is $5,750,000 Number of years is 8 Interest Rate…
Q: An annuity provides for 30 annual payments. The first payment of $100 is made immediately and the…
A: Present value of growing annuity is the stream of cash flows that keeps growing at a specified rate…
Q: determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to…
A: The present value of annuity is given by the following formula : Present value of annuity = Annual…
Q: Present Value of an Annuity On January 1, you win $60,000,000 in the state lottery. The $60,000,000…
A: Present value is the value of the future sum of money or cash flows today as per given rate of…
Q: Find the future value of an ordinary annuity of $5,000 semiannually for seven years at 6% annual…
A: The question gives the following information:
Q: Engineering Economics (Annuity) An ordinary annuity paying P1,811 at the end of each year for 15…
A: The question is based on the concept of future value calculation for annuity payment. Formula as :…
Q: Present Value of an Annuity On January 1, you win $2,900,000 in the state lottery. The $2,900,000…
A: Present value of annuity can be calculated as: = Annuity payment * Present Value annuity factor (i%,…
Q: On January 1, you win $46,000,000 in the state lottery. The $46,000,000 prize will be paid in equal…
A: Present value is the worth of future cash flows at a discounted rate.
Q: On January 1, you win $1,900,000 in the state lottery. The $1,900,000 prize will be paid in equal…
A: Present value of winnings = Annual amount to be received x Present value of $1 Annuity (7%, 10…
Q: If $1000 is deposited at the end of each year for 5 years into an ordinary annuity earning 8.99%…
A: Interest amount using ordinary annuity can be calculated by subtracting principal by the end of the…
Q: A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In…
A: “Since you have posted multiple questions, we will solve first question for you. If you want any…
Q: On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal…
A: Given, Lottery to be received in 10 Installments at the end of Each year R = Interest Rate = 6%…
Q: On January 1, you win $5,000,000 in the state lottery. The $5,000,000 prize will be paid in equal…
A: Given that: Instalment amount = $500,000 Period = 10 years Interest rate = 6%
Q: Annuity Find the amount and present value of an annuity of P5,000 every end of 6 months for 12…
A: Introduction: Annuity refers to the series of payments that are actually made at equal intervals.…
Q: A company offer annual payments of $1675 at the end of each year for the next FIVE years. a) What…
A: Annuity is a concept of regular equal payments made at equal interval of time. It is used to…
Q: Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $81,000…
A: To determine the monthly interest on the annuity: Lump sum payment = $81,000 Annuity = $625 Period =…
Q: On January 1 you win $3,480,000 in the state lottery. The $3,480,000 prize will be paid in equal…
A: Present Value: The value of today’s amount to be paid or received in the future at a compound…
-
Present Value of an Annuity
On January 1, you win $2,200,000 in the state lottery. The $2,200,000 prize will be paid in equal installments of $220,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.
$
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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 annuityPresent Value of an Annuity On January 1, you win $4,600,000 in the state lottery. The $4,600,000 prize will be paid in equal installments of $460,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use Table 3. Round to the nearest whole dollar. Check My Work 3 more Check My Work uses remaining. Previous Next 11:18Present Value of an Annuity On January 1, you win $1,100,000 in the state lottery. The $1,100,000 prize will be paid in equal installments of $110,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use present value table. Round to the nearest whole dollar.
- Present Value of an Annuity On January 1, you win $1,600,000 in the state lottery. The $1,600,000 prize will be paid in equal installments of $160,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use present value table. Round to the nearest whole dollar.$fill in the blank 1Present Value of an Annuity On January 1, you win $1,900,000 in the state lottery. The $1,900,000 prize will be paid in equal installments of $190,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 7%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.$fill in the blank 1Present Value of an Annuity On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal installments of $6,000,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use Table 3. Round to the nearest whole dollar.$
- Present Value of an Annuity On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal installments of $6,000,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 10%, determine the present value of your winnings. Use present value tables. Round to the nearest whole dollar.$fill in the blank 1 Will the present value of your winnings using an interest rate of 10% be more than the present value of your winnings using an interest rate of 6%?Present Value of an Annuity On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 12%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.Present value of an annuity On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 12%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. X Will the present value of your winnings using an interest rate of 12% be more than the present value of your winnings using an interest rate of 5%? No
- Present value of an annuity On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal installments of $7,250,000 over six years. The payments will be made on December 31 of each year, beginning on December 31 of this year. The current interest rate is 5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Present value of an annuity DATA Sum of prize $43,500,000 Annual payment $7,250,000 Number of years 6 Interest rate 5.0% Date of win January 1 Date of payments December 31 of each year Using formulas and cell references, perform the required analysis, and input your answer into the Amount column. Transfer the numeric result for the green entry cell (B14) into the appropriate field in CNOWv2 for grading. Amount Formula PV of annual paymentsPresent value of an annuity On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal installments of $7,250,000 over six years. The payments will be made on December 31 of each year, beginning on December 31 of this year. The current interest rate is 5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the present value of your winnings. Round your answer to the nearest dollar.Present value of an annuity On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal installments of $7,250,000 over six years. The payments will be made on December 31 of each year, beginning on December 31 of this year. The current interest rate is 5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the present value of your winnings. Round your answer to the nearest dollar. $ fill in the blank 2