Suppose you win the Publishers Clearinghouse $7.5 million sweepstakes. The money is paid in equal monthly installments of$31,250 in the beginning of each month over 20 years. If the going APR is 6%, how much is the sweepstakes actually worth today?A $4,361,899.12B Answer can not be found.C) $4,735,166.03(D) $4,559,293.68E $4,383,708.61

To determine the present value (PV) of the sweepstakes winnings, we need to calculate the present…

Answered: Suppose you win the Publishers…

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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can you solve in the excel file please. Thanks 2. ABC Lottery Corporation runs the "Millionaire Life" lottery. The winner of the Grand Prize can choose either $1,000,000 per year for 25 years or a single cash payment of $17,000,000. Which option should be chosen if the payments are made at the beginning of each year and, on low-risk investments, money can earn 3.2% compounded annually?
You have just won the lottery and must decide between $3,000,000 paid in 20 annual payments of $150,000 with the first payment coming one year from today or a lump sum payment today. If fair market interest rates are 7% what lump sum payment today is equivalent to the annual $150,000 payments? Round your answer to the nearest dollar.
You have just received notification that you have won the $2.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 77 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? Multiple Choice O $1,494.48 $1,591.95 $1,656.93 $1,624.44 $8,283.38
Suppose a state lottery prize of $3 million is to be paid in 5 payments of $600,000 each at the end of each of the next 5 years. If money is worth 12%, compounded annually, what is the present value of the prize? (Round your answer to the nearest cent.)
es You have just received notification that you have won the $2 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 63 years from now. What is the present value of your windfall if the appropriate discount rate is 8 percent? Multiple Choice $14,425.18 $15,679.54 $15.993.13 $15,365.95 $40,135.54
Please if you can't help eith all parts please skip it , i will definitely like for complete answer , pls dont post incomplete.If $33,500 is invested at 6.3% for 30 years, find the future value if the interest is compounded the following ways. (Round your answers to the nearest cent.) (a) annually $ (b) semiannually $ (c) quarterly $ (d) monthly $ (e) daily (N = 360) $ (f) every minute (N = 525,600) $ (g) continuously $ (h) simple (not compounded) $
What questions 25, 26
Show work please. Thank you
28,29,30
A morning radio show offered the following four prizes as alternative prizes for one of its competitions. Which prize is the most valuable if your discount rate is 6%? (Show working to justify your answer.) (a) $5,000 per year, forever, with the first amount paid after 1 year. (b) $12,000 per year for eight years, with the first amount paid today. (c) $20,000 today and $80,000 six years from now. (d) $15,000 per year for ten years, with the first amount paid at year 5. (e) State the most valuable prize. (Give a reason for your choice.)
1. You just won the PA lottery! The lottery offers you a choice: you may choose a lump sum today, or $89 million in 26 equal annual installments at the end of each year. Assume the funds can be invested (yield) at an annual rate of 7.65%. What is the lump sum that would equal the present value of the annual installments? : $89,000,000 $38,163,612 $41,083,128 $13,092,576
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