You have just won the TVM Lottery. You will receive $1 million today plus another 10...

You have just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $670,000 per year. Thus, in one year you receive $1.67 million. In two years, you get $2.34 million, and so on.

If the appropriate interest rate is 7.7 percent, what is the value of your winnings today?

Expert Solution

or 30.1041602 million

jeff jeffy answered 2 years ago

You just won the TVM Lottery. You will receive $1 million today plus another 10 annual...

You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $375,000 per year. Thus, in one year, you receive $1.375 million. In two years, you get $1.75 million, and so on. If the appropriate interest rate is 6.5 percent, what is the value of your winnings today?

You just won the TVM Lottery. You will receive $80 million today plus another 20 annual...

You just won the TVM Lottery. You will receive $80 million today plus another 20 annual payments that increase by $4,000,000 per year. starting from this year. If the appropriate interest rate is 6.5 percent, what is the value of your winnings today?

You have just won a lottery entitling you to receive, starting today, a series of 21...

You have just won a lottery entitling you to receive, starting today, a series of 21 quarterly payments of $25,000 each, followed, one year after this series of payments ends, by a second series of annual payments of $30,000 each forever! (The first $30,000 payment is to be received exactly one year after the last $25,000 payment is received.) If the appropriate discount rate is r = 10 percent compounded continuously, what is the present value of all these future...

You have just won the lottery and will receive a lump sum payment of $22.53 million...

You have just won the lottery and will receive a lump sum payment of $22.53 million after taxes. Instead of immediately spending your money, you plan to deposit all of the money into an account that will earn 4.81 percent. If you make equal annual withdrawals for the next 25 years, how much can you withdraw each year starting exactly one year from now? Fancy Cat Products has a project that will cost $250,100 today and will generate monthly cash...

You have just won the lottery and will receive $500,000 in one year. You will receive...

You have just won the lottery and will receive $500,000 in one year. You will receive payments for 25 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? 5,511,586 $29,258,112 $36,804 $29,258,112 $5,741,235

You have just won the lottery and will receive $1,500,000 in one year. You will receive...

You have just won the lottery and will receive $1,500,000 in one year. You will receive payments for 30 years, and the payments will increase by 2.5 percent per year. If the appropriate discount rate is 7 percent, what is the present value of your winnings?

You have just won the lottery and will receive $610,000 in one year. You will receive...

You have just won the lottery and will receive $610,000 in one year. You will receive payments for 19 years, which will increase 5 percent per year. The appropriate discount rate is 12 percent. Required: What is the present value of your winnings?

you just won a lottery entitling you to receive, starting today, a series of 21 quarterly...

you just won a lottery entitling you to receive, starting today, a series of 21 quarterly payments of 25,000 each, followed, one year after this series of payments end, by a second series of annual payments of $30,000 each forever! (This $30,000 payment is to be recieved exactly one year after the last $25,000 payment is received) if the appropriate discount rate is =10% compounded continuously, what is the present value of all these future lottery payments? please show how...

Manuel just won the lottery and the prize was $ 1 million. You have the option...

Manuel just won the lottery and the prize was $ 1 million. You have the option of receiving a lump sum of $ 312,950 or $ 50,000 per year for the next 20 years. If Miguel can invest the single amount at 9% or invest the annual payments at 7%; Which one should I choose? a. one-time amount of 312,950 b. b. annual payments of 50,000

You have just won a lottery of $1 million and you can chooseamong the following...

You have just won a lottery of $1 million and you can choose among the following three payout options. The effective annual interest rate (EAR) is 5%. Option A: $100,000 every two years, starting 2 years from now and ending 20 years from now. Option B: $100,000 a year at the end of the next 10 years, with the first payment one year from today. Option C: $500,000 right now and $500,000 exactly 20 years from now. Please calculate the...

Question