You have just had a big win on Powerball. You will receive $7,500,000 today, and then receive 35 payments of $2,200,000. These payments will start one year from now and will be paid every six months. Idaho and Co Investments has offered to purchase all the payments from you for $60,000,000. The interest rate is an APR of 5 percent compounded daily. Assume there are 365 days per year. What is the value today of the cash flows from your Powerball winnings?

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A: The money's present value is its current worth compared to some of its potential future value after…

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A: To calculate the present value we will use the below formula   Present value =…

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Q: Your finance advisor offers you an investment that promise $200000 in 15 years from now. He said…

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Q: will receive $1000 two years from today, and at the end of each subsequent year, you will receive an…

A: In perpetuity there are payments forever and there is no break of the payments in perpetuity.

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Q: Wells Fargo offers a new savings product: You make the following payments over the next 5 years and…

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Q: Someday you hope to retire and have $200,000 of income a year in today's dollars. You want to fund…

A: To solve this problem, we need to use the concept of future value and present value of an annuity.…

Q: You decided to deposit $300 each month starting next month for the next 10 years. If your account…

A: Computation:

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Q: You expect to receive $150,000 per year on a contract that will last 5 years. You are trying to…

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Q: What is the value of the payments today?

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