You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 35 years and the payments will increase by 4 percent per year. If the appropriate discount rate is 8 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 35 years and the payments will increase by 4 percent per year. If the appropriate discount rate is 8 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

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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Similar questions

What is the present value of $250,000 to be received after 40 years with a 15 percent discount rate? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
You have just won the lottery and will receive $520,000 in one year. You will receive payments for 26 years, and the payments will increase 4 percent per year. If the appropriate discount rate is 12 percent, what is the present value of your winnings?
Suppose you're offered the following two accounts to invest $10,000 for 5 years: 11% simple interest and 6% interest compounded monthly. Which is the best choice? Part: 0 / 3 Part 1 of 3 The future value of $10,000 using 11% simple interest is $ X Ś Round your answer to the nearest cent. Do not round any intermediate steps.
Show work please. Thank you
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) You wish to have $17,750 in 12 years. How much should you invest now at 6% interest, compounded annually in order to have $17,750, 12 years from now? O $1,395.44 O $8,655.43 O $8,821.22 O $12,513.04
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 to show and explain steps thanks
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(Present-value comparison) You are offered $1,300 today, $6,000 in 10 years, or $26.000 in 23 years. Assuming that you can earn 9 percent on your money, which offer should you choose? a. What is the present value of $26,000 in 23 years discounted at 9 percent interest rate? (Round to the nearest cent) b. What is the present value of $6,000 in 10 years discounted at 9 percent interest rate? $(Round to the nearest cent) c. Which offer should you choose? (Select the best choice below) OA. Choose $6,000 in 10 years because its present value is the highest OB. Choose $1,300 today because its present value is the highest OC. Choose $26.000 in 23 years because its present value is the highest Com

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