Clint Ryder won a lottery that will pay him $2,000,000 after twenty years. Assuming an appropriate interest rate is 5% compounded annually, what is the present value of this amount ? $5, 306,600, 24, 924,420 735, 780 2,000,000

Q: Your business associate who owes you $8000 offers to pay you either $6640 now or else to pay you 5…

A: Yearly installment (A) = $1600 n = 5 years r = 5.8% compounded continuously

Q: A property will provide $24,400 at the end of each year forever. If its value is $245,000, what must…

A: Annual Cash Flow = $24,400Perpetuity Value (Property Value) = $245,000

Q: Compute the present value of an annuity of $ 556 per year for 15 years, given a discount rate of 9…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…

A: To find the present value of the investment, we will first define where the payments are made. We…

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: The prize in last week’s lottery was estimated to be worth $90 million. If you were lucky enough to…

A: Present value = Annual payment + Annual payment×1-(1+r)-(n-1)r=$3.6 million +$3.6…

Q: ou won the lottery! You are considering whether or not to accept a lump sum amount or an annual…

A: Annual cash inflow (P) = $ 91,873 Discount rate (r) = 6% Number of annual deposits (n) = 12

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: Mary is going to receive a 32-year annuity of $9,700 per year. Nancy is going to receive a…

A: We need to use the present value of the ordinary annuity formula to calculate the present value of…

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: How much would you have at the end of 5 years if you choose to take the $ 6640 offer now, and you…

A: N = 5 years Investment = 6640 Interest rate = 5.8% compounded continuously

Q: semiannual payments over the next 9 years.

A: Amortization is an accounting method that lowers the book value of the loan or intangible asset…

Q: Quokka recently won the lottery and has the opportunity to receive $200,000 per year at the end of…

A: Fair value accounting is a process of recording assets and liabilities of the company at the market…

Q: You will receive an inheritance of 116034 in 10 years.  If the interest rate is 3.8%, how much is it…

A: Time value of money is one of the important concept in finance. It says that a dollar amount…

Q: Sally Mander wants to set up a perpetual annuity for herself that will pay $60,000 annually that…

A: A perpetual annuity is a financial instrument which gives regular fixed payments to the holder for…

Q: Suppose a lottery payout is $100,000 per year for the next ten years. If the annual interest rate is…

A: Money worth today is the present value of cash flow from the prize based on the time value of money.

Q: Mr. Lucky just won the lottery. He has a choice of $1,000,000 today or a $50,000 semi-annual payment…

A: The concept of time value of money will be used here.Amount today is the present value and…

Q: 1.1) You have just won the lottery and will receive $2.5 million in one year. You will receive…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: Frank just won the lottery! Starting one year from now, he will recieve $66, 000 per year for the…

A: Long-term investment decisions are frequently made by organizations when starting new initiatives,…

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: 7. If you deposit $5,000 at the end of each of the next 20 years into an account paying 10.8 percent…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Suppose that a man lends $1600 for 4.3 years at 12% per year simple interest. At the end of the 4.3…

A: Simple Interest  Simple interest refers to the amount of interest that is calculated on the…

Q: Sally Mander wants to set up a perpetual annuity for herself that will pay $85,000 annually that…

A: Perpetual Annuity : When an Investor invests an amount which will keep compounding itself at a…

Q: You borrow an amount and agree to pay it off with one lump sum payment of $40,000 in 6 years at 10%.…

A: If the interest is compounded annually Then amount to be borrowed can be calculated using following…

Q: Raymund just won the lottery. He can get his prize either in the form of $40,000 at the end of each…

A: Prize money at the end of each year us $40,000 Single amount paid immediately is $500,000 Interest…

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: Just suppose your won a lottery of $1,000,000 and you have the option to receive it today or in 2…

A: Step 1 The value of a sum of money today is known as its present value.

Q: 4. Suppose Ken invested $1 million in an ordinary annuity that earned 4.25%. a. How much would he…

A: We will solve this question with the help of PMT function in excel where,   rate- Interest rate…

Q: If you were to invest $50,000 from you lottery winnings today, how much will it be worth in 20 years…

A: To find the future value after some specific some time can be found out by the formula of future…

Q: Suppose you won the lottery that will payout over 20 years. The 1st payment you receive will be…

A: given time = 20 first payment = $150000

Q: You have won the lottery! The lottery officials have given you a choice between receiving (A)…

A: Solution Given Two options are (A) $15,000,000 today, or (B) $1,000,000 at the end of each of the…

Q: •An insurance company offers to pay you $1,000 per year for 10 years if you will pay $6,710 up…

A: We can solve this using Present value of annuity formulaPresent value of annuity is =…

Q: You purchase a home for $207,000 that you expect to appreciate 8% in value on an annual basis. How…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: A lottery winner will receive $6 million at the end of each of the next twelve years. What is the…

A: To calculate the future value (FV) when the winner receives $6 million at the beginning of each of…

Q: Sally Mander wants to set up a perpetual annuity for herself that will pay $125,000 annually and…

A: Particulars Values Annual withdrawals after 25 years in perpetuity   $ 1,25,000 Number of years…

Q: 3. You won the lottery!  You are considering whether or not to accept a lump sum amount or an annual…

A: Annuity means a series of finite number of payments which are the same in size and made in equal…

Q: If Alvin invest 5500 to day in a saving account. The money will grow to 8500 at the end of the year…

A: The effective annual rate of the investment is 11.50%. So, 3rd option is the correct…

Q: 1.1) For $20,000, you can purchase a five-year annuity that will pay $5000 per year for five years.…

A: Here, Details of 1.1 Present Value (PV) is $20,000 Annuity Payment (PMT) is $5,000 Time Period…

Q: The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man buys…

A: Loans are to be paid by the periodic payments that carry the payment for the principal amount and…