Question
In: Finance
a.The state lottery's million-dollar payout provides for $1.2 million to be paid in 20 installments of...
a.The state lottery's million-dollar payout provides for $1.2 million to be paid in 20 installments of $60,000 per payment.The first $60,000 payment is made immediately, and the 19 remaining $60,000 payments occur at the end of each of the next 19 years. If 11 percent is the discount rate, what is the present value of this stream of cash flows? If 22 percent is the discount rate, what is the present value of the cash flows? if percent is the discount rate, the present value of the annuity due is ?
b. You plan to retire in 9 years and buy a house in Oviedo, Florida. The house you are looking at currently costs $110000 and is expected to increase in value each year at a rate of 6 percent. Assuming you can earn 13 percent annually on your investments, how much must you invest at the end of each of the next 9 years to be able to buy your dream home when you retire?If the house you are looking at currently costs $110000 and is expected to increase in value each year at a rate of 6 percent, what will the value of the house be when you retire in 9 years.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
The state lottery's million-dollar payout provides for $11 million to be paid in 20 installments of...
The state lottery's million-dollar payout provides for $11
million to be paid in 20 installments of 50,000 per payment. The
first 50,000 payment is made immediately, and the
19 remaining 50,000 payments occur at the end of each of the
next 19 years. If 7 percent is the discount rate, what is the
present value of this stream of cash flows? If
14 percent is the discount rate, what is the present value of
the cash flows?
a. If 7...
The state lottery's million-dollar payout provides for $1.4 million to be paid in 25 installments of...
The state lottery's million-dollar payout provides for $1.4
million to be paid in 25 installments of $56,000 per payment. The
first $56,000 payment is made immediately, and the 24 remaining
$56,000 payments occur at the end of each of the next 24
years.
If 6 percent is the discount rate, what is the present value of
this stream of cash flows?
If 12 percent is the discount rate, what is the present value
of the cash flows?
The state lottery's million-dollar payout provides for $1 million(s) to be paid over 24 years in...
The state lottery's million-dollar payout provides for $1
million(s) to be paid over 24 years in 25 payments of $40,000. The
first $40,000 payment is made immediately, and the 24 remaining
$40,000 payments occur at the end of each of the next 24 years. If
9 percent is the appropriate discount rate, what is the present
value of this stream of cash flows? If 18 percent is the
appropriate discount rate, what is the present value of the cash
flows?
The state lottery's million-dollar payout provides for $1 million(s) to be paid over 19 years in...
The state lottery's million-dollar payout provides for $1
million(s) to be paid over 19 years in 20 payments of $ 50,000.
The first $ 50,000 payment is made immediately, and the 19
remaining $ 50,000 payments occur at the end of each of the next 19
years. If 10 percent is the appropriate discount rate, what is the
present value of this stream of cash flows? If 20 percent is the
appropriate discount rate, what is the present value of...
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1.31.3 million to be...
(Present value of annuity payments) The state lottery's
million-dollar payout provides for
$1.31.3
million to be paid in
2525
installments of
$52 comma 00052,000
per payment. The first
$52 comma 00052,000
payment is made immediately, and the
2424
remaining
$52 comma 00052,000
payments occur at the end of each of the next
2424
years. If
99
percent is the discount rate, what is the present value of this
stream of cash flows? If
1818
percent is the discount rate, what...
(Related to Checkpoint 6.2) (Present value of annuity payments) The state lottery's million-dollar payout provides for...
(Related to Checkpoint 6.2) (Present value of annuity
payments) The state lottery's million-dollar payout provides
for
$1.3
million to be paid in
25
installments of
$52,000
per payment. The first
$52,000
payment is made immediately, and the
24
remaining
$52,000
payments occur at the end of each of the next
24
years. If
8
percent is the discount rate, what is the present value of this
stream of cash flows? If
16
percent is the discount rate, what is the...
state lottery payout provides 1.4 million to be paid in 25 installments of 56,000 per payment....
state lottery payout provides 1.4 million to be paid
in 25 installments of 56,000 per payment. the first 56,000 payment
is immediate and the remaining 24 payments of 56,000 each will
occur at the end of the next 24 years. if 7% is the discount rate,
what is the present value of this stream of cash flows?
if 14% is the discount rate, what is the present value of the cash
flow?
a. if 7% is the discount rate, the...
the states lottery million-dollar payout provides for $1.3 million to be paid in 20 i stallments...
the
states lottery million-dollar payout provides for $1.3 million to
be paid in 20 i stallments of $65,000 per payment. The first
$65,000 payment is made immediately, and the 19 remaining $65,000
payments occur at the end of each of the next 19 years. If 6
percent is the discount rate, what is the present value of this
stream of cash flows? If 12 percent is the discount rate, what is
the present value of the cash flows?
A state lottery commission pays the winner of the Million Dollar lottery 20 installments of $50,000/year....
A state lottery commission pays the winner of the Million Dollar
lottery 20 installments of $50,000/year. The commission makes the
first payment of $50,000 immediately and the other n = 19
payments at the end of each of the next 19 years. Determine how
much money the commission should have in the bank initially to
guarantee the payments, assuming that the balance on deposit with
the bank earns interest at the rate of 4%/year compounded yearly.
Hint: Find the present...
A state lottery commission pays the winner of the Million Dollar lottery 20 installments of $50,000/year....
A state lottery commission pays the winner of the Million Dollar
lottery 20 installments of $50,000/year. The commission makes the
first payment of $50,000 immediately and the other n = 19
payments at the end of each of the next 19 years. Determine how
much money the commission should have in the bank initially to
guarantee the payments, assuming that the balance on deposit with
the bank earns interest at the rate of 5%/year compounded
yearly. Hint: Find the present value...
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