You have just won a “Philippine Lotto Lottery”. Lotto officials offered you the choice of two alternative payouts: a. Php 10 million today: b. Php 30 million, seven years from now Which payment will you choose if relevant interest rate is 10%?

Q: You have just won the Multi-State Lottery. You have the option of receiving a check for $35,000,000…

A: The objective of this question is to determine the interest rate that the lottery commission is…

Q: A bank is offering to pay you $1000 at the beginning of each month for the next 10 years. The…

A: Payment per month (PMT) = $1,000Timing = BeginningAnnual interest rate is 6%. So, monthly interest…

Q: In a recent e-news, you observe that the 6-month forward rate is $1.5031 / Euro. Further, if you…

A: To determine if arbitrage profit is possible, we need to analyze the interest rate parity and…

Q: You won the lottery. You may receive a one-time cash payout today or receive $340,000 in 13 years.…

A: Future Value = fv = $340,000Time = t = 13Discount Rate = r = 12%

Q: I recently found a real-life advertisement in the newspaper. (Only the phone number has been…

A: Lottery amount = $10,000,000 Annual payment (P) = 10,000,000/20 = $500,000 Number of annual payments…

Q: What is the value today of a money machine that will pay $1,321.00 per year for 11.00 years? Assume…

A: The concept of time value of money will be used here. To compute the future value we compound the…

Q: Derek has the opportunity to buy a money machine today. The money machine will pay Derek $35,200.00…

A: The time value of money concept will be used and applied here. As per the time value of money…

Q: Please explain how to do this in Excel. Please explain how you did it and what the results mean. You…

A: Sale Price = $650,000Down Payment = 20% of Sale PriceTime Period = 30 YearsInterest Rate = 7.2%

Q: If you deposit OMR 5000 in your account in a bank; if your bank pays 9.05% interest, how much will…

A: future value = present value *(1+rate)^n future value = 5000 * 1.090515

Q: a. If the first payment is made four years from now, what is this grand prize really worth today?…

A: Present Value is the value of money in today at zero period for all the payments which is received…

Q: You are offered the opportunity to put some money away for retirement. You will receive 10 annual…

A: The following information has been provided,10 annual payments of $5,000 beginning in 26 years will…

Q: What is the value today of a money machine that will pay $3,776.00 per year for 19.00 years? Assume…

A: The concept of time value of money will be used here. To compute the future value we compound the…

Q: You sign a mobile phone contract agreeing to pay £30 at the end of each month for the next two…

A: Present value (PV) is a financial concept used to determine the current worth of future cash flows…

Q: Q4. A local bank advertises the following deal: "Pay us $100 at the end of each year for 10 yearsand…

A: A. Present Value of Your Payments to the BankThe formula for the present value 𝑃𝑉 of an ordinary…

Q: You are offered the right to receive $1,000 per year forever, starting in one year. If your discount…

A: Perpetuity is constant series of periodic payments for an infinite time. The present value of a…

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: You are considering taking out a loan of $10,000.00 that will be paid back over 6 years with monthly…

A: Unpaid balance can be calculated by using loan amortization formula mention below. Unpaid loan(Loan…

Q: Using an annual effective interest rate of 8%, determine X.

A: To determine the value of X, we need to calculate the present value of the cash flows using the…

Q: A local bank advertises the following deal: "Pay us $100 at the end of each year for 11 years and…

A: In perpetuity is type of annuity in which there are payments forever and for indefinite period of…

Q: Your aunt offers you a choice of $21,200 in 20 years or $670 today. Use Appendix B as an approximate…

A: TVM concept will be used here.   TVM means time value of money.

Q: What is the value today of a money machine that will pay $1,548.00 per year for 17.00 years? Assume…

A:

Q: You have just received notification that you have won the $1.03 million first prize in Lamarche…

A: The time value of money is a financial concept that is used to value and measure the worth of a sum…

Q: Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in…

A: The concept of time value of money will be used and applied here. As per the concept of time value…

Q: What is the present value of $3,000 to be received 2 years from now, if the discount rate is: (a)…

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

Q: I hope you could write the formula and process more clearly. Thank you

A: To solve this problem, we can use the formula for the present value of an…

Q: Your uncle offers you a choice of $106,000 in 10 years or $43,000 today. Use Appendix B as an…

A: The concept of TVM states that the money earned earlier is worth more because the money earns…

Q: A local bank advertises the following deal: "Pay us $100 at the end of each year for 10 years and…

A: Ordinary annuity are the PMTs which are made at the end of the period.  Provided a certain rate of…