Question
In: Statistics and Probability
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)
Solutions
orchestra answered 1 year agoRelated 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.
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. $
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?
You just won the lottery. Congratulations! The jackpot is $85,000,000 paid in eight equal annual payments....
You just won the lottery. Congratulations! The jackpot is
$85,000,000 paid in eight equal annual payments. The first payment
on the lottery jackpot will be made today. In present value terms,
you really won ______ assuming annual interest rate of 11.00%. Show
work or formula in excel.
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.
Find the present value of payments of $250 every six months starting immediately and continuing through...
Find the present value of payments of $250 every six months
starting immediately and continuing through 6 years from the
present, and $200 every six months thereafter through 12 years from
the present. if i^(2) = 4%.
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?
Discounted Cash Flow Valuation You and your spouse begin immediately saving for retirement and the dreamy...
Discounted Cash Flow Valuation
You and your spouse begin immediately saving for retirement and
the dreamy “ever after” that you need to fund. At this point, your
“ever after” fund has a balance of $0. You begin depositing $300
each month, starting one month from now, for the next 30 years.
Your spouse begins depositing $5,000 each year, starting one year
from now, into the same account for the next 30 years. The joint
account earns 9 percent APR, compounded...
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?
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