A state lotto has a prize that pays $2,000 each week for 25 years.Find the total value of the prize: $2600000If the state can earn 5% interest on investments, how much money will they need to put into anaccount now to cover the weekly prize payments?1155555.5560Reminder: There are 52 weeks in a year.

IF the State invest an fixed amount at an interest rate of 5%, they can cover the weekly prize…

Answered: A state lotto has a prize that pays…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A state lotto has a prize that pays $500 each week for 35 years.Find the total value of the prize: $ If the state can earn 6% interest compounded weekly on investments, how much money will they need to put into an account now to cover the weekly prize payments?$ Reminder: There are 52 weeks in a year.
Winners of the PowerState Lottery can take $30 million now or payments of $2.5 million per year for the next 15 years. These are equivalent at what annual interest rate? The answer is closest to what value? (a) 1% (b) 2% (c) 3% (d) 5%
37) You receive a perpetual cash flow of $500 every year from the University at Albany at a rate of 8%. What is the value of this investment? a) Ad infinitum b) $40,125.00 c) $1,000.37 d) $6,250.00 e) $500.00 38) An interest rate is quoted at 10%, compounded semi-annually (six months). You have $110.25 at the end of the period for an interest rate of 10.25%. What is the 10.25% interest rate called? a) Stated interest rate. b) Annual Percentage Rate (APR) c) Effective Annual Rate d) An Interest only loan e) Simple interest For Questions 39-41, please use the following example: Bank of America wants to issue a $1,000,000 bond. The rate on debt issued by comparable company Citigroup is 12%. Thus, Bank of America will pay 12% per year in interest on monies borrowed for 30 years. Bank of America repays the principal at the end of year 30. 39) What is Bank of America's coupon payment? a) $1,000,000 b) 12% c) 30 years d) $120,000 e) Not able to calculate 40) What is the par value of Bank of…
You expect to save $1,000 at the end of every year for 8 years. During the first 3 years, your savings will earn 4%, compounded semi-annually. During the last 5 years, your savings will earn 5%, compounded monthly. How much money will you have after 8 years? Round to the nearest dollar. Select one: a. $9,412 b. $9,546 c. $8,661 d. $9,876
A state lotto has a prize that pays $1,000 each week for 25 years. Find the total value of the prize: $ 1300000 If the state can earn 4% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments? Reminder: There are 52 weeks in a year.
Please solve asap
Suppose a state lottery prize of $3 million is to be paid in 5 payments of $600,000 each at the end of each of the next 5 years. If money is worth 12%, compounded annually, what is the present value of the prize? (Round your answer to the nearest cent.)
Problem 04.045 - Effort to save money for early retirement In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1300 per month, starting one month from now, into a fixed rate account that pays 8% per year compounded annually. How much will be in the account at the end of 16.00 years? At the end of 16.00 years, the account will be $ 500068
What is the following prize worth today if money can earn 9% compounded monthly: $5000 payable two years from now, and a series of eleven $100 monthly payments beginning one month from now? A. $5231.22 B. $7124.26 C. $3240.98 D. $3265.29 E. $8620.56
3) You have a financial goal of putting a $10,0000 down payment on a home in 5 years. How much would you need to save each year if you could earn 8% annually? A) $1,423.44 B) $1,704.56 C) $1,990.50 D) $2,200.23

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