You have just won your state's big lottery, the Mega Power Pick-6! The jackpot is $123,000,000. You have the option of receiving a check for $12,300,000 at the end of each he next 10 years. You would receive the first check in a year. The state lottery commission also allows you the option of receiving a one-time payment of $99,764,018 when you turn in he winning ticket. What interest rate is the state lottery commission using to determine he one-time payment? (Use the present value and future value tables, a financial calculator preadsheet or the formula method for your calculations. If using present and future value ables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX Round the interest rate to the nearest whole percent.) F(Click the icon to view the Future Value of $1 table.) (Click the icon to view th
You have just won your state's big lottery, the Mega Power Pick-6! The jackpot is $123,000,000. You have the option of receiving a check for $12,300,000 at the end of each he next 10 years. You would receive the first check in a year. The state lottery commission also allows you the option of receiving a one-time payment of $99,764,018 when you turn in he winning ticket. What interest rate is the state lottery commission using to determine he one-time payment? (Use the present value and future value tables, a financial calculator preadsheet or the formula method for your calculations. If using present and future value ables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX Round the interest rate to the nearest whole percent.) F(Click the icon to view the Future Value of $1 table.) (Click the icon to view th
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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Transcribed Image Text:You have just won your state's big lottery, the Mega Power Pick-6! The jackpot is
$123,000,000. You have the option of receiving a check for $12,300,000 at the end of each of
the next 10 years. You would receive the first check in a year. The state lottery commission
also allows you the option of receiving a one-time payment of $99,764,018 when you turn in
the winning ticket. What interest rate is the state lottery commission using to determine
the one-time payment? (Use the present value and future value tables, a financial calculator, a
spreadsheet or the formula method for your calculations. If using present and future value
tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX.
Round the interest rate to the nearest whole percent.)
(Click the icon to view the Future Value of $1 table.)
(Click the icon to view the Future Value of an Ordinary
Annuity table.)
The state lottery commission is using
a(n)
(Click the icon to view the
Present Value of $1 table.)
(Click the icon to view the
Present Value of an
Ordinan: Annuity tabla 1
% interest rate annually to determine the one-time
payment.
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