you have just won the lottery and will receive $460,000 in one year. you will receive payments for 21 years, and the payments will increase 4 percent per year. if the appropriate discount rate is 11 percent, what is the present value of your winnings? Please explain how to solve using the financial calculator

Q: Assume that investing $500 in a fund today will give you a return of $530 a year later. On the other…

A: See the explanation belowExplanation:No, based on the information provided, choosing the bank's…

Q: You are expecting to receive the following payments: $7,000 in one year and $5,000 three years from…

A: Payment for Year 1 = p1 = $7000Payment for year 3 = p3 = $5000Discount Rate = r = 8%

Q: You have been offered the opportunity to invest in a project that will pay$3,509per year at the end…

A: Formula to calculate Future Value of this cash flows patter is as follows:  FV = C1*(1+r)4 +…

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: You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that…

A: Present value (PV) is the current value of future cash flow, accounting for the time value of cash.…

Q: The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to…

A: Formula: Present Value of winnings = Amount to be received per year X Present value of annuity of $…

Q: You win the lottery and are offered the following choices. The appropriate discount rate is 7%. How…

A: We need to compute the present value of all payments and compare the PV of all options.

Q: Suppose you borrow money from your parents for college tuition on January​ 1, 2019. Your parents…

A: The cost of college tuition fees would be equal to the present value of all future payments.

Q: You are thinking about buying a real estate property.  If you buy the property, you think you will…

A: Present value refers to the money present today being more valuable than the money will receive in…

Q: Sam Hart decides to invest $70,000  in a fund that will earn 6% annual​ interest, compounded…

A: Time value of money is a concept of payment of interest for using money. Under this concept we…

Q: You open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next…

A:

Q: Suppose you win the lottery and you're thinking about whether to take the lump sum or be paid the…

A: First payment: $8 million (immediate payment at t=0)Discount rate: 7%Number of payments: 30Growth…

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: 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: Ronald has an investment opportunity that promises to pay him $45,000 in five years. He could earn a…

A: Present value refers to the current date value of all future cash flows discounted at the interest…

Q: In this project, you will use a graphing calculator to compare savings plans. For instance, suppose…

A: The objective of this question is to compare the final amount of money you would have after one year…

Q: Suppose that you won $3,000,000/- in a lottery. You are given the option to take $100,000/- at the…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Assume you win a lottery, and you are offered the following stream of payments by the lottery…

A: Future value of cash flows will be reflective of the value of cash flows in the future after…

Q: You need to save $200 000 by making monthly deposit of 100 for 6 years. How much interest must you…

A: Rate of interest refers to the percentage of return on the investment.

Q: You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for…

A: The present value of the growing annuity is the current worth of a cash flow series growing at a…

Q: Steve's, a maker of swizzle sticks, is considering the purchase of a new plastic stamping machine.…

A: The IRR is the rate at which the Net present value is zero. It is the rate at which the present…

Q: Use future or present value techniques to solve the following problems.   Starting with $13,000,…

A: The Time Value of Money (TVM) is a fundamental financial concept that illustrates the idea that…

Q: You are thinking about buying a real estate property.  If you buy the property, you think you will…

A: The most that you should be willing to pay for the property is [selling price today*1/(1+r%)^t]

Q: If an investor invests her money in a project with a 10% annual return. What is her nominal rate  of…

A: The effective interest rate (EIR), effective annual interest rate (AER), or simply effective rate is…

Q: You have just received a windfall from an investment you made in a friend’s business. You will…

A: a) Present value = Future value / (1 + Rate)^Time Present value = $14,050/1.06 + $3,250/1.06^2 +…

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: 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: What is the present value of the following cash flows if the discount rate is at 5%? You receive 100…

A: Discount Rate = r = 5%Cash Flow for year 0 = cf0 = $100Cash Flow for year 1 = cf1 = $200Cash Flow…

Q: If you could invest the mon

A: The present value of the amount to be invested today can be computed as follows using the Texas BA 2…

Q: You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that…

A: Present value defines the current value of an asset that will be present at sone futrue date…

Q: 1. You have $35,000 you want to invest for the next 20 years to help with retirement. An investment…

A: The concept of time value will be used here. To compute the future value, we have to consider the…

Q: What is the excel function and formula for this question?   Off-The-Books Investment Firm, LLC, has…

A: The return which is determined in terms of percentage which is expected to be earned on investment…

Q: You have just won the lottery and will receive $580,000 in one year. You will receive payments for…

A: Data given: Cash flow Year 1 (CF1) =$580000 n=28 years Growth (g)=3% Discount rate (r) =11%…

Q: Investment X offers to pay you $5,300 per year for eight years, whereas Investment Y offers to pay…

A: Solution for Present Value (PV) of Investments X and YWe will solve this using both Excel formulas…

Q: Suppose that you borrow $200,000 in the form of a 12-year loan with an annual interest rate of 6%…

A: Loan value: $200,000Time period: 12 years , which is 144 monthsInterest rate: 6% p.a, which is 0.5%…

Q: You are going to receive $220,000 in 50 years. What is the difference in present value between using…

A: Time value of money means that the money we receive today will be worth more than the money that…