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%
1. Compute the initial value of the money if the borrower needs deposit the accumulated amount of P59, 137 to the bank after 8 months and 24 days if the money has the interest rate of 19% per annum. 2. What is the equivalent percent of 20% compounded quarterly if converted to compounded monthly? 3. The Philippine Association of Board Examiners (PABE) desires to award a P1,600 scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started July 1, 1977 by a donor in the amount of P24,000. The PABE invested this sum at that time at 4% per annum and plans on adding P200 each year to the fund from its dues Starting July 1, 1978 for as long as awards are made. A. For how many years starting July 1, 1978 can scholarship be awarded? B.What will be the balance in the fund after the last award was made?
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.
can you solve in the excel file please. Thanks 2. ABC Lottery Corporation runs the "Millionaire Life" lottery. The winner of the Grand Prize can choose either $1,000,000 per year for 25 years or a single cash payment of $17,000,000. Which option should be chosen if the payments are made at the beginning of each year and, on low-risk investments, money can earn 3.2% compounded annually?
It is likely that airplane tickets will increase 6% in each of the next 3 years. The cost of a plane ticket at the end of the first year will be $10952. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each year for the next 3 years? Assume the savings account pays 1% annual interest. Round your answer to 2 decimal places.
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.)

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