Question

In: Finance

Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume...

Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates.

                                                                              

JackpotAmount  InterestRate  Equal AnnualPayments  Present Value(in dollars)

$16,000,000 7%. 20. $

$16,000,000. 11%. 20. $

$16,000,000 7%. 25. $

$16,000,000. 11% 25. $

Solutions

Expert Solution

1.
=PMT(7%,20,-16000000,0,1)=1411483.00176831

2.
=PMT(11%,20,-16000000,0,1)=1810099.27030115

3.
=PMT(7%,25,-16000000,0,1)=1283147.92105668

4.
=PMT(11%,25,-16000000,0,1)=1711571.05663504

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume...
Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates.                                                                                JackpotAmount InterestRate Equal AnnualPayments Present Value(in dollars) $4,000,000 5% 20 $ $4,000,000 9% 20 $ $4,000,000 5% 25 $ $4,000,000 9% 25 $
Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume...
Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates. Jackpot amount interest rate equal annual payments present value in dollars $16,000,000 8% 20 $ $16,000,000 13% 20 $ $16,000,000 8% 25 $ $16,000,000 13% 25 $ (round to nearest dollar amount)
The millionaire lottery winner won the $ 175,000,000 jackpot and has the option of receiving payments...
The millionaire lottery winner won the $ 175,000,000 jackpot and has the option of receiving payments of $ 7,000,000 annually for 25 years beginning in year 1 or taking $ 109,355,000 today. At what interest rate? Are the two options equivalent?
Assume that you just hit the ​$9 million jackpot in a​ lottery, which promises you a...
Assume that you just hit the ​$9 million jackpot in a​ lottery, which promises you a payment of ​$3 million for the next three years. Since​ we've established that the jackpot will not be worth ​$9 million in​ today's dollars, how much is it worth if the interest rate is 12 ​percent?​ (Hint: the first payment is made​ immediately.) ​$nothing million​
Find the present value of payments of $200 every six months starting immediately and continuing through...
Find the present value of payments of $200 every six months starting immediately and continuing through four years from the present, and $100 every six months thereafter through ten years from the present, if i (2) = 0.06.
Assume that you just hit the $30 million Jackpot in the New York State Lottery, which...
Assume that you just hit the $30 million Jackpot in the New York State Lottery, which promises you a payment of$1 million for the next thirty years. You are clearly excited, but have you really won $30 million? Assume that the bank interest rate is 7.5% per annum. What is the Present Value of the lottery?
YEARLY cash flows (100), 25, 40, 50, 60. 17. Find the NPV for the above yearly...
YEARLY cash flows (100), 25, 40, 50, 60. 17. Find the NPV for the above yearly cash flows assuming a 14 % cost of capital. 17A. What is the profitability index for the cash flows above?
Find the present value of the following cash flows. A perpetual stream of consecutive annual payments...
Find the present value of the following cash flows. A perpetual stream of consecutive annual payments (made at year-end) of $800, which starts at the end of year 5 and grows by 6% per year forever. Discount rate is 10%.
For the cash flow given below, determine the value of A that will make the future...
For the cash flow given below, determine the value of A that will make the future worth in year 8 equal to 40000 TL at an interest rate of 10% per year. (Note: you should use at least one A formulation in the solution (A/P , P/A, A/F or F/A). ). (25 pts)( Year 0, 1, 2, 3, 5 Cash Flow, TL 0, 1250, 1250, 1250, 1250+2A)
The yearly salary (in thousands of dollars) for a small company are listed below. Find the...
The yearly salary (in thousands of dollars) for a small company are listed below. Find the mode, mean, median and population standard deviation and use the Empirical Rule to find a 95% confidence interval. 74 67 39 75 98 67 460 96
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT