On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. Exhibit 7 Present Value of an Annuity of $1 at Compound InterestPeriods4%42%5%5%%6%6½%7%10%11%12%13%10.961540.956940.952380.947870.943400.938970.934580.909090.900900.892860.8849621.886091.872671.859411.846321.833391.820631.808021.735541.712521.690051.6681032.775092.748962.723252.697932.673012.648482.624322.486852.443712.401832.3611543.629903.587533.545953.505153.465113.425803.387213.169873.102453.037352.974474.451824.389984.329484.270284.212364.155684.100203.790793.695903.604783.5172365.242145.157875.075694.995534.917324.841014.766544.355264.230544.111413.9975576.002055.892705.786375.682975.582385.484525.389294.868424.712204.563764.4226186.732746.595896.463216.334576.209796.088755.971305.334935.146124.967644.796777.435337.268797.107826.952206.801696.656106.515235.759025.537055.328255.13166108.110907.912727.721737.537637.360097.188837.023586.144575.889235.650225.42624

Present value of future cash inflow discounted at 12% is the present value of your winnings

On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar

On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 14.20EX

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TABLE 13.2 Present value of an annuity of $1 ½% 6% 7% 1% 0.9901 1.9704 2% 0.9804 3% 0.9709 4% 0.9615 0.9950 1.9851 1.9416 1.9135 1.8861 5% 0.9524 1.8594 2.7232 3.5459 4.3295 2.9702 2.9410 2.8839 2.7751 2.8286 3.7171 3.9505 3.9020 3.6299 4.9259 4.4518 3.8077 4.8534 4.7134 4.5797 5.7955 5.6014 6.7282 6.4720 5.8964 5.2421 6.8621 5.4172 6.2303 7.0197 6.0021 7.8230 7.6517 7.3255 8.7791 8.5660 7.7861 8.1622 8.9826 5.0757 5.7864 6.7327 6.4632 7.4353 7.1078 8.1109 7.7217 8.3064 8.8632 9.7304 9.4713 8.5302 10.6770 10.3676 9.7868 9.2526 8.7605 8% 0.9434 0.9346 0.9259 1.8334 1.8080 1.7833 2.6730 2.6243 2.5771 3.4651 3.3872 3.3121 4.2124 4.1002 3.9927 4.9173 4.7665 4.6229 5.5824 5.3893 5.2064 6.2098 5.9713 5.7466 6.8017 6.5152 6.2469 7.3601 7.0236 6.7101 7.8869 7.4987 7.1390 11.2551 10.5753 8.3838 7.9427 7.5361 12.1337 9.9856 8.8527 8.3576 7.9038 13.4887 13.0037 12.1062 11.2961 10.5631 9.8986 8.2442 14.4166 13.8650 12.8492 11.9379 11.1184 10.3796 9.7122 9.1079 8.5595 15.3399 14.7179 13.5777…
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Appendix C Future value of an annuity of $1, FVA Period 1 2 3 5 THREE 15 17 19 20 25 30 40 50 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 17.258 18.430 19.615 20.811 22.019 28.243 34.785 48.886 64.463 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 20.157 21.762 23.414 18.639 20.012 21.412 22.841 24.297 32.030 40.588 60.402 84.579 112.80 FVA-A 25.117 26.870 36.459 47.575 75.401 (1+0)" 1.000 2.040 3.122 4.246 5.416 6.633 7.898 10.583 12.006 13.486 15.026 16.627 18.292 20.024 23.698 25.645 27.671 29.778 41.646 56.085 95.026 152.67 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 12.578 14.207 15.917 17.713 19.599 21.579 23.657 25.840 28.132 30.539 33.066 47.727 66.439 120.80 209.35 Percent 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491 13.181 14.972 16.870 18.882 21.015 23.276 25.673…