A state lotto has a prize that pays $600 each week for 15 years. Find the total value of the prize: $   If the state can earn 3% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments?

Q: How much money must be deposited into an account paying interest at 5% compounded annually in order…

A: Given, Rate = 5% Amount =$2000

Q: You have won a state lottery prize quoted as “$12 million dollar lottery”, what this really mean is…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: A house and lot is to be purchased by paying 35,000 pesos monthly for 25 years. The first payment is…

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A: In this we have to calculate present value of ANNUITY FACTOR and from that we can get the six…

Q: You deposit $3,000 at the beginning of every year for 30 years into an investment that earns 8.5%.…

A: Periodic deposit, A = $3,000  Interest rate, r = 8.5%  Period, n = 30 years    The future value of…

Q: To offer scholarships to children of employees, a company invests $15,000 at the end of every three…

A: Interest The percentage of the principal amount which is received by the investor or paid by the…

Q: A state lotto has a prize that pays $700 each week for 25 years. Find the total value of the prize:…

A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…

Q: Red Deer College wants to set up a scholarship for students in its business programs such that at…

A: Present value of money is the amount required today for the future needs based on the time value of…

Q: A college wants to provide students with a perpetual scholarship of $10,000 at the end of every 3…

A: A perpetuity is a series of equal payments that go on forever. The amount invested to receive the…

Q: Cooley Landscaping needs to borrow $25000 for a new front-end dirt loader. The bank is willing to…

A: For Annual Payments,Rate of interestAnnual (r) = 8% or 0.08Number of Period  = 6  = $5407.88(Using a…

Q: Using the time value of money Congratulations! You have won a state lottery. The state lottery…

A: Present value (option #1) = Amount receivable at the end of 5th year *PVF@6% ,5 year =…

Q: A state lotto has a prize that pays $1,000 each week for 30 years. Find the total value of the…

A: Annuity is a series of periodic equal payments at equal interval. With periodic interest rate (r),…

Q: A state lotto has a prize that pays $1,700 each week for 15 years. Find the total value of the…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: Suppose you buy a car for $18,400 and finance it at 8%. Determine the monthly payment and total cost…

A: Hi, since you have posted multiple questions, we will answer the first one, as per authoring…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: University tuition and fees can be paid by using one of two plans. Early-bird: Pay total amount due…

A: Equivalent Amount refers to the amount which is proportionally equal to its own value at any…

Q: How much will you pay for a $10,000 automobile in 20 years if the infla-tion rate averages 3 percent…

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Q: You donate $400,000 to provide annual scholarships in perpetuity. The money is deposited into an…

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Q: Professor Dom wishes to set up a permanent scholarship paying $5,000 per annum, at the beginning of…

A: To determine Present value(PV) from the Future value(FV) , discounting is required.

Q: You intend to endow a scholarship that pays $5,000 every 6 months, starting 6 months from now. If…

A: A series of payments made at an equal interval of time for an infinite period is called perpetuity.…

Q: If P10,000.00 is deposited each year for 9 years, how much annuity can a person get annually from…

A: First we need to calculate future value of annuity for 9 years by using this equation FV of annuity…

Q: 4. Jones would like to borrow S$4000 for a project. He plans to pay back the loan plus the interest…

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Q: deposit P5,000 at the beginning of every year into an investment which earns 16% interest per year…

A: Solved using Financial Calculator  (i) Amount at the end of 4th Year SET BGN Mode in Calculator.…

Q: f a person spends $6 a week on coffee (assume $300 a year), what would be the future value of that…

A: Future value is the amount deposited and amount of interest accumulated over the period.In the given…

Q: A scholarship fund is to be set up to provide monthly scholarships of $600. If the first payment is…

A: The concept of present value indicates that the value of a future amount of money is less than its…

Q: A state lotto has a prize that pays $2,000 each week for 25 years. Find the total value of the…

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

Q: (Comprehensive problem) You would like to have $54,000 in 16 years. To accumulate this amount, you…

A:

Q: You want to save P85,000 for future family vacation (three years from now). If the bank pays 8.5%…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A company wants to have $30,000 at the beginning of each 6-month period for the next 4 1/2 years. If…

A: Semi annual payment = $30,000 Period = 4 1/2 = 4.50 Years Semi annual period = 4.50*2 = 9 Interest…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Future Value :— It is the value of present cash flow in future.    Future Value = Present Value ×…

Q: A state lotto has a prize that pays $500 each week for 35 years. Find the total value of the prize:…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: You donate $20,000,000 to Greensboro College’s new teacher bonus program. What size annual bonus can…

A: The donation is an example of a perpetual annuity.  This is an indefinite  stream of cash flow…

Q: You want to save $1,000 a month for the next 10 years to buy a townhome The money will be set aside…

A: Compound = Monthly = 12Payment = p = $1000Number of Payment = n = 10 * 12 = 120Interest Rate = r =…

Q: A state lotto has a prize that pays $1,000 each week for 25 years. Find the total value of the…

A: Given that a state lotto has a prize  that pays  each week for  years.

Q: Assume you won the state lottery and you are entitled to $5,000,000. If you choose not to take the…

A: Present value of the amount =  $5,000,000Amount to be received weekly over next 10 years1 year = 52…

Q: petual annuity that pays 2% interest compounded monthly. The prize money is paid out in fixed…

A: Perpetual annuity is a concept of infinite payment of cash flow series. Here the total amount of…