Explanation Given information: Someone just won $72500000 in a state lottery. They paid an annuity of $ 2500000 a year for 29 years. The annual rate of inflation is r = 3 % . Formula used: Present value can be calculated as: Present value = ∫ 0 t 1 c ( t ) e − r t d t Integration by parts: ∫ u d v = u v − ∫ v d u Common integration using integration by parts ∫ x n e a x d x Where u = x n and d v = e a x d x Calculation: Consider the provided statement: The annuity paid is $ 2500000 It is provided that t 1 = 29 years and the inflation rate is r = 3 % . Now find Present value with the help of the formula: Present value = ∫ 0 t 1 c ( t ) e − r t d t Substitute the value of t 1 = 29 , r = 0

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ISBN: 9780357265161

Author: Larson

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Chapter 6.1, Problem 74E

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To calculate: The present value if someone just won $72500000 and it will be paid an annuity of $2500000 over the time interval of 29 years and the inflation rate is r=3%.

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Chapter 6.1, Problem 73E

Chapter 6.1, Problem 75E

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Chapter 6 Solutions

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Ch. 6.1 - Prob. 4SWU Ch. 6.1 - Prob. 5SWU Ch. 6.1 - Prob. 6SWU Ch. 6.1 - Prob. 7SWU Ch. 6.1 - Prob. 8SWU Ch. 6.1 - Prob. 9SWU Ch. 6.1 - Prob. 10SWU Ch. 6.1 - Prob. 1E Ch. 6.1 - Prob. 2E Ch. 6.1 - Prob. 3E Ch. 6.1 - Prob. 4E Ch. 6.1 - Integration by Parts In Exercises 5-16, use...Ch. 6.1 - Prob. 6E Ch. 6.1 - Integration by Parts In Exercises 5-16, use...Ch. 6.1 - Prob. 8E Ch. 6.1 - Integration by Parts In Exercises 5-16, use...Ch. 6.1 - Prob. 10E Ch. 6.1 - Integration by Parts In Exercises 5-16, use...Ch. 6.1 - Prob. 12E Ch. 6.1 - Integration by Parts In Exercises 5-16, use...Ch. 6.1 - Prob. 14E Ch. 6.1 - Integration by Parts In Exercises 5-16, use...Ch. 6.1 - Prob. 16E Ch. 6.1 - Prob. 17E Ch. 6.1 - Prob. 18E Ch. 6.1 - Prob. 19E Ch. 6.1 - Prob. 20E Ch. 6.1 - Finding an Indefinite Integral In Exercises 17-38,...Ch. 6.1 - Finding an Indefinite Integral In Exercises 17-38,...Ch. 6.1 - Prob. 23E Ch. 6.1 - Prob. 24E Ch. 6.1 - Finding an Indefinite Integral In Exercises 17-38,...Ch. 6.1 - Prob. 26E Ch. 6.1 - Prob. 27E Ch. 6.1 - Prob. 28E Ch. 6.1 - Prob. 29E Ch. 6.1 - Prob. 30E Ch. 6.1 - Prob. 31E Ch. 6.1 - Prob. 32E Ch. 6.1 - Prob. 33E Ch. 6.1 - Prob. 34E Ch. 6.1 - Prob. 35E Ch. 6.1 - Prob. 36E Ch. 6.1 - Finding an Indefinite Integral In Exercises 17-38,...Ch. 6.1 - Finding an Indefinite Integral In Exercises 17-38,...Ch. 6.1 - Prob. 39E Ch. 6.1 - Prob. 40E Ch. 6.1 - Prob. 41E Ch. 6.1 - Evaluating a Definite Integral In Exercises 39-46,...Ch. 6.1 - Prob. 43E Ch. 6.1 - Prob. 44E Ch. 6.1 - Prob. 45E Ch. 6.1 - Prob. 46E Ch. 6.1 - Prob. 47E Ch. 6.1 - Prob. 48E Ch. 6.1 - Prob. 49E Ch. 6.1 - Prob. 50E Ch. 6.1 - Prob. 51E Ch. 6.1 - Prob. 52E Ch. 6.1 - Verifying Formulas In Exercises 53 and 54, use...Ch. 6.1 - Verifying Formulas In Exercises 53 and 54, use...Ch. 6.1 - Prob. 55E Ch. 6.1 - Prob. 56E Ch. 6.1 - Prob. 57E Ch. 6.1 - Prob. 58E Ch. 6.1 - Prob. 59E Ch. 6.1 - Prob. 60E Ch. 6.1 - Prob. 61E Ch. 6.1 - Prob. 62E Ch. 6.1 - Prob. 63E Ch. 6.1 - Prob. 64E Ch. 6.1 - Prob. 65E Ch. 6.1 - Revenue A company sells a seasonal product. 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The present value if someone just won $72500000 and it will be paid an annuity of $ 2500000 over the time interval of 29 years and the inflation rate is r = 3 % .

Solution Summary: The author calculates the present value of 48420704.23 if someone won 72500000 in a state lottery.

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To calculate: The present value if someone just won $72500000 and it will be paid an annuity of $2500000 over the time interval of 29 years and the inflation rate is r=3%.

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Chapter 6 Solutions