Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You and 11 coworkers just won $12
million ($1,000,000.00 each) from the
state lottery. Assuming you each receive
your share over 20 years and that the
state lottery earns a 5 percent return on
its funds, what is the present value of
your prize before taxes are if you request
the 'up-front cash' option?
n
1
2
3
ه
یی
هم
به
4
Present Value of an Annuity of $1 (PVIFA)
4% 5% 6% 7%
0.962 0.952 0.943 0.935
1.833
2.673
1.886 1.859
1.808 1.783
2.775
2.723
2.624 2.577
2.531 2.487
3.630
3.546
3.465
3.387 3.312
3.240 3.170
4.452
4.329
4.212
4.100
3.993
3.890 3.791
5.242
5.076 4.917 4.767
4.623
4.486
4.355
5.206 5.033 4.868
6.728 6.472
6.230
5.582 5.389
5.535 5.335
9
5.995 5.759
10
6.418 6.145
6.805 6.495
7.161
6.814
9.986 9.394
7.487
7.103
6.002
5.786
7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747
8.566 8.162 7.786 7.435 7.108 6.802
6.515 6.247
9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710
11 10.368 9.787 9.253 8.760 8,306
7.887 7.499 7.139
12 11.255 10.575 9.954 9.385 8863
8.384 7.943 7,536
13 12.134 11.348 10.635
8.853 8.358 7.904
14 13.004 12.106 11.296
10.563 9.899 9.295 8.745 8,244
15 13.865 12.849 11.938 11.118 10.380 9.712
9.108 8.559
16 14.718 13.578 12.561 11.652 10.838 10.106
9.447 8.851
17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122
18 16.398 14.992
13.754 12.659 11.690
10.828 10.059
9.372
19 17.226 15.678 14.324 13.134 12.085 11.158 10.336
20
9.604
18.046 16.351 14.877 13.590 12.462 11.470 10.594
21
9.818
18.857 17.011 15.415 14.029 12.821 11.764 10.836
22 19.660
10.017
17.658
15.937 14.451 13.163 12.042 11.061
23 20.456
10.201
18.292 16.444 14.857 13.489 12.303 11.272
24 21.243
10.371
18.914 16.936 15.247
13.799 12.550 11.469 10.529
22.023 19.523 17.413 15.622
14.094 12.783 11.654
25.808
10.675
22.396
19.600 17.292 15.372 13 765
32.835
12.409
11.258 10.274 9.427
27.355 23.115 19.793 17.159 15.046
13.332
39.196 31.424
11.925
25.730
10.757 9.779
21.482 18.256 15.762 13.801 12.233 10 962 9.915
7.786
7.367
8.061 7.606
8.313 7.824
8.544 8.022
8.756 8.201
8.950 8.365
9.129 8.514
9.292 8.649
9.442 8.772
9.580 8.883
9.707 8.985
9.823 9.077
25
30
40
50
5
6
7
8
1%
2%
0.990 0.980
1.970 1.942
2.941 2.884
3.902 3.808
4.853 4.713
5.795 5.601
3%
0.971
1.913
2.829
3.717
4.580
5.417
8% 9% 10%
0.926 0.917 0.909
1.759 1.736
round to nearest dollar please include
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