On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal installments of $6,000,000 over 10 years.  The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings.      Use the present value  factor of annuity of $1  Show your work:

Q: On January 1 you win $800,000 in the state lottery. The $800,000 prize will be paid in equal…

A: PV stands for the Present Value, which is defined as the current value of the future amount of money…

Q: Jake won $350,000 in the lottery! He will receive $35,000 each year at the beginning of each of the…

A: The objective of this question is to calculate the present value of Jake's lottery winnings. The…

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: On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal…

A: Present value: Present value means the discounted value of a future sum of money at a given…

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

A: Answer image:

Q: Suppose a state lottery prize is to be paid in 25 payments of $360,000 each at the end of each of…

A: Annuity refers to the periodic payment or receipt of cash flow. The annuity period usually…

Q: m January 1, you win $46,000,000 in the state lottery. The $46,000,000 prize will be paid in equal…

A: Present value is the equivalent value today of the future cash flow that is to be received in the…

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: This is the amount of future value reduced or discounted at a rate of interest till…

Q: On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal…

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

Q: . Lottery Winnings The winner of a “million dollar”lottery is to receive $50,000 plus $50,000 at…

A: present value of annuity (PVA)=A×1-11+rnr A=annuity r=rate of interest n=number of years

Q: Dinesh

A: For the first option, the present value of receiving $74,000 immediately is straightforwardly…

Q: Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a lump payment today…

A:

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: On January 1, you win $4,800,000 in the state lottery. The $4,800,000 prize will be paid in equal…

A: Present value of winnings = Annual installments x Present value factor (6%, 10 years)

Q: On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal…

A: NPV is also known as Net present value. It is a capital budgeting techniques which help in decision…

Q: On January 1, you win $2,500,000 in the state lottery. The $2,500,000 prize will be paid in equal…

A: The Present value of lottery won and get in installments for next 10 year of $ 250000 , would be…

Q: 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The…

A: The problem case focuses on calculating the future value of annuity payments. The annuity payment is…

Q: Samuel David wants to make 5 equal annual withdrawals of $8,000 from a fund that will earn interest…

A: The present value is comparing a sum of money's current value to its future value. It takes…

Q: 1. You recently won a lottery and have the option of receiving one of the following three prizes:…

A: Annuity is the series of equal cash payments over the period.

Q: None

A: Present value:Present value is popularly known in short as PV. It is a concept of accounting that…

Q: Clearlake Optical has a $50,000 note that comes due in 5 years. The owners wish to create a sinking…

A: Compound = Semiannually = 2Future Value = fv = $50,000Time = t = 5 * 2 = 10Interest Rate = r = 4.5 /…

Q: A corporation creates a sinking fund in order to have $590000 to replace some machinery in 9 years.…

A: Future value refers to the value at the end of the tenure of future cash flows at the regular…

Q: On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal…

A: Present value of winnings = Annual installment * PVA of 1 at i for n periods

Q: If $12,000 is deposited annually starting on January 1, 2020 and it earns 9%, how much will…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: I need help figuring out which table to use in this question. Either: compound value, present value,…

A: Hi, this is an example of simple interest. Hence no table can be used, as the interests are neither…

Q: What is the fair value of the lottery payments according to the Financial Accounting Standards Board…

A: According to the financial accounting standards board (FASB), The fair and present value of the…

Q: On January 1. you win $60.000.000 in the state lottery. The $60.000.000 prize will be paid in equal…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  Solution:  Present value of winnings:  Payment…

Q: On September 1, 2010, you decided to put $ 15000 in a money market fund. On March 1, 2015, you…

A: The future value of an investment is the approximate value of buying and holding an investment for a…

Q: On January 1, you win $46,000,000 in the state lottery. The $46,000,000 prize will be paid in equal…

A: Present value is the worth of future cash flows at a discounted rate.

Q: 3: A lottery winner has a decision between a lump sum of $1,000,000 or a 20 year annuity of $100,000…

A: The lump sum amount is $1,000,000. The annual payment is $100,000. The rate of interest is 5%. The…

Q: Jake won $350,000 in the lottery! He will receive $35,000 each year at the beginning of each of the…

A: The objective of this question is to calculate the present value of the lottery winnings. The…

Q: The Cooper Foundation contributes $25,000 per year into an annuity fund for building a new zoo. The…

A: Formula to calculate FV in annuity:  F = P * ([1 + i]^N - 1 )/i Wherein: P = $25,000 deposited…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.