A state lotto has a prize that pays $900 each week for 30 years. Find the total value of the prize:    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?

Q: What would you pay for an annuity of $2,000 paid every six months for 12 years if you could invest…

A: Details given in the question are : Annuity payment every six months (PMT) = $2000 Time period (n) =…

Q: Congratulations, you just won the lottery! As the winner, you will receive payments of $2 million at…

A: The present value of an annuity due is the calculation used to determine the current value of a…

Q: Suppose you just won the state lottery, and you have a choice between receiving $2,825,000 today or…

A: Present value = pv = $2,825,000 Time = nper = 20 years Payment = pmt = $240,000

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A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…

Q: A lottery winner will receive $5.5 million every 6 months for the next twenty years. What is the…

A: The objective of this question is to calculate the future value of the lottery winnings, given that…

Q: How much money will the Halls have to set aside each month so as to have enough saved up for a down…

A: Deposit means the amount which is deposited at the end of every specified period to accumulate a…

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

A: The question is related to Cash price of the house and lot if interest rate is 12% converted…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. A…

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

Q: Suppose that you won $1,500,000 in the Illinois state lottery. It will be paid to you over 20 years…

A: An annuity is end of year equal payments made for a fixed period of time at a specified interest…

Q: You have $50,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly.…

A: Amount present in fund = $50,000 Interest rate = 5.5% compounded quarterly

Q: you just won the state lottery, and you have a choice between receiving $2,625,000 today or a…

A: Rate of return inbuilt in annuity is rate at which present value of annuity is equals to amount of…

Q: A lottery pays the winner $1 million in 20 equal annual payments of $50,000. The first payment will…

A: Working note:

Q: You can receive lottery winnings of either $800,000 now or $100,000 per year for the next 10 years.…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: corporation hopes to withdraw $9,000 at the end of each year for six years from a fund that earns 7%…

A: Variables in the question:Withdrawal each year (PMT)=$9000 n=6 yearsRate=7%

Q: (Comprehensive problem) You would like to have $52,000 in 12 years. To accumulate this amount, you…

A: Future value = $52,000Period = 12 yearsInterest rate = 10% compounded annually

Q: You want to have $50,000 in 5 years. How much must you deposit each QUARTER in an account paying 10%…

A:

Q: You have Just won the lottery and will receive $490,000 in one year. You will receive payments for…

A: To calculate the present value we will use the below formula   Present value =…

Q: As a result of winning the Gates Energy Innovation​ Award, you are awarded a growing perpetuity. The…

A: In the financial system, perpetuity refers to a situation in which a stream of cash flow payments…

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: Engr. Velasco decided to subscribe in a globe promo which must be paid one thousand pesos per month…

A: The value of the money today will be the present value of the said payments.

Q: The VEEtile company aims to have enough money to invest into a new grader equipment in 4 years. If…

A: In case of simple interest, interest will be same for all the 4 years as there is no compounding at…

Q: You just won a $625,000 lottery prize!  You will receive $25,000 per year for the next 25 years,…

A: Using present value of annuity due formulae, PV of annuity due = PMT * [1-(1/(1+r)^n)/r] * (1+r)

Q: Your company wants to create a scholarship program that will cost $17,000 dollars a year. They will…

A: To calculate the investment amount required today we will use the below formula   Investment amount…

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: 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: Leberland Corporation deposits $100,000 every year in a savings account (beginning at the end of the…

A: The objective of this question is to calculate the future value of an ordinary annuity. An ordinary…

Q: Find the present value of a 6-year annuity paying P75,000 at the end of each year. The cost of money…

A: Please refer to the image below for hand written solution.

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: Tuck Hardware Store will have $30,000 payment due in 5 years. How much would they need to invest…

A: Computation:

Q: pic: Perpetuities 2. A series of bimonthly payments will begin immediately and will continue…

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Q: Teal and Associates needs to borrow $35,000. The best loan they can find is one at 12% that must be…

A: Monthly payment for the loan comprise of an interest part and principal repayment part and is…

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: A savings institution advertised "Invest $6000 a year for 10 years and we will pay you $6000 a year…

A: Formula to calculate FV of investment:  F = P * ([1 + i]^N - 1 )/i Wherein: P = $6,000 deposited…

Q: You will deposit $10,000 per year for five years at 9%. Then you will just let themoney sit there…

A: Deposit = 10,000 Interest % =9% Time Period = 5 years   Future Value of Deposits = [Deposit *…

Q: In 10 years, you plan to retire and buy a lotin the province. The lot you are looking at currently…

A: The time value of money concept asserts that an amount of money is worth more now than it would be…