determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.

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A: We need to use RATE function in excel to calculate annual effective interest rate.The formula is:…

Q: On January 1, you win $3,440,000 in the state lottery. The $3,440,000 prize will be paid in equal…

A: Present value of winnings = Annual installments  amounts x Present value factor (5%, 8 years)

Q: f you were to put $1,000 in the bank each year for the next 10 years at 6% interest, which table…

A: Future value of $ 1: This table is used to calculate the future value of a single amount invested…

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A: Part (a)If an annuity A is paid at the end of period over N periods and bears a discount (interest)…

Q: Find the present value of an annuity with payments of $1,000 at the end of every three months for 10…

A: Annuity is a series of equal payments made for a particular period of time. Present value of annuity…

Q: Present Value of an Annuity On January 1, you win $4,600,000 in the state lottery. The $4,600,000…

A: Present value is the current value of a future amount that is to be received or paid out. Future…

Q: Answer each of the following independent questions. 1. You recently won a lottery and have the…

A: Answer image:

Q: The present value of an annuity is given. Find the periodic payment. (Round your final answer to two…

A: Present value of annuity = Payment,*1/r[1-(1/(1+r)^n]] Where r= 7.3%/4 = 1.825% n= 4 quarters*20…

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 want to invest in an annuity that will pay you $10,500 per year for the first 4 years and $7,200…

A: The compounding rate of interest is always more beneficial to the investor because it offers more…

Q: Present Value of an Annuity On January 1, you win $1,100,000 in the state lottery. The $1,100,000…

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

Q: On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 percent…

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Q: Present Value of an Annuity On January 1, you win $3,680,000 in the state lottery. The $3,680,000…

A: An annuity is a series of periodic payments made/received in exchange for a lump sum payment. It is…

Q: The value of the annuity is ​$______.

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: Present value of an annuity Determine the present value of $110,000 to be received at the end of…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: he present value of an annuity is given. Find the periodic payment. (Round your final answer to two…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: 1. What is the accumulated value of the Php 25 payment be made at the beginning of each of the next…

A: The same amount is being paid annually over three years; this is an annuity. To find the future…

Q: Present value of an annuity Determine the present value of $200,000 to be received at the end of…

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Q: Solve by using formulas. (Round your answer to the nearest cent.) Present value (in $) of an annuity…

A: Present value of annuity due is calculated using following equation Present value =…

Q: Monthly payments of $150 are paid into an annuity beginning on January 31, with a yearly interest…

A: An annuity is a financial product designed to provide a stream of periodic payments over a specified…

Q: Present value (in $) of an annuity due

A: We can determine the PV of annuity due manually using the formula below:In the formula above PMT =…

Q: On January 1, 2021, you deposited $5,500 in a savings account. The account will earn 10 percent…

A: In many financial computations, such as investment analysis, retirement planning, and assessing the…

Q: the present value of using an interest rate of 5%, a. By successive computations, using the present…

A: When considering the opportunity cost of having money now rather than later, present value indicates…

Q: Determine the accumulated amount of a five year annuity paying $6000 at the end of each year.…

A: FUTURE VALUE  Future value is the value of an asset at a specific date. Future Value is value of…

Q: Present value of an annuity Determine the present value of $190,000 to be received at the end of…

A: Both of the above parts will give the same answers. Present value of annuity is the sum of the…

Q: Present value of an annuityOn January 1 you win $50,000,000 in the state lottery. The $50,000,000…

A: The present value of an annuity represents the present worth of the money to be received in the…

Q: Present Value of an Annuity On January 1, you win $2,200,000 in the state lottery. The $2,200,000…

A: Present value of annuity can be computed by multiplying the present value of annuity of $1 at given…

Q: An annuity pays a fixed amount of $3,000 at the end of each of the next 5 years. Assume the interest…

A: we will be using excel function =PV and =FV to calculate present value and future value of annuity…

Q: Use Table 12-2 to calculate the present value (in $) of the annuity due. (Enter a number. Round your…

A: Step 1: Given Value for Calculation Compound = Monthly = 12payment = p = $300Time = t = 2.25 * 12 =…

Q: Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

A: FV of annuity = P * [ (1+r)^n  - 1 ] /r  Where, P = Periodic payment i.e. $1700 n = no. of…

Q: You will receive a cash payment of $7072 in 7 years. If the relevant interest rate is 19.89%, how…

A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Rate Time…

A: Future value The value of a financial asset at some time in the future is known as the future value…

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Q: Present Value of an Annuity On January 1, you win $2,900,000 in the state lottery. The $2,900,000…

A: Present value of annuity can be calculated as: = Annuity payment * Present Value annuity factor (i%,…

Q: Present Value of an Annuity Determine the present value of $110,000 to be received at the end of…

A: Formula: Present value annuity = Yearly annuity amount x Annuity factor. Multiplying annuity factor…

Q: On January 1, you win $1,900,000 in the state lottery. The $1,900,000 prize will be paid in equal…

A: Present value of winnings = Annual amount to be received x Present value of $1 Annuity (7%, 10…

Q: What's the interest rate of a 8-year, annual $3,600 annuity with present value of $20,000? (Use a…

A: Annuity amount=$3600Period of annuity=8yearsToday amount=$20000