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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 2 years ago
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