The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at the rate of$56,000 a year for the next 20 years.With a discount rate of 13 percent, what is the present value of your winnings? Use Appendix D for an approximate answer, butcalculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round yourfinal answer to 2 decimal places.)Present valuo

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

Answered: The Clearinghouse Sweepstakes has just…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Solve the following problem using either Table 11-1 or Table 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent) Marcus invests $9,500, at 9% interest, compounded annually for 18 years. Calculate the compound interest for his investment. a. $15,390.00 b. $24,890.00 c. $35,312.64 d. $44,812.64
Assume you won a worldwide lottery that pays $1.55 million in year 0, $5 million in year 1, and $200,000 in years 5 through 100. Assuming that 100 years is as “long” as infinity, calculate the perpetual equivalent annual worth for years 1 through infinity at an interest rate of 10% per year. (Enter your answer in dollars and not in millions.) The perpetual equivalent annual worth for years 1 through infinity is $ .
Al Rosen invests $25,000 in a mint condition 1952 Mickey Mantle Topps baseball card. He expects the card to increase in value 12 percent per year for the next 10 years. How much will his card be worth after 10 years? Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Compute the future value in year 9 of a $2,000 deposit in year 1, and another $1,500 deposit at the end of year 3 using a 10 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
On January 1, you win $5,000,000 in the state lottery. The $5,000,000 prize will be paid in equal installments of $500,000 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 Table 3. Round to the nearest whole dollar.
ou have discovered an investment opportunity that earns a 3% rate of interest compounded semiannually. What amount should you deposit today to have $7000 in three years? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final answer to the nearest dollar.) $6400 $6370 $6406 $6402
Please answer me in typing, avoid images and handwriting. 1.In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $150. In 2010, the winner's check was $1,350,000. What was the percentage increase per year in the winner'scheck over this period? If the winner's prize increases at the same rate, what will it be in 2040?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made. An account with quarterly compounding and an APR of 7.32% $ should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.) Enter your answer in the answer box. Type here to search 0 哥同
Complete a,b,& c please and thank you
You have just won the lottery and will receive $1,750 per year forever. What is the present value of this infinite stream of cash flows given an 7% discount rate? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. $12,500 a b $17,500 с $23,333.33 d $175,000.00
You have just received notification that you have won the $2.05 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 75 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89. Present value

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