On January 1, you win $37,500,000 in the state lottery. The $37,500,000 prize will be paid in equal installments of $6,250,000 over 6 years. The payments will be made on December 31 of each year, beginn on December 31 of this year. If the current interest rate is 6.5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers
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- On January 1, you win $4,800,000 in the state lottery. The $4,800,000 prize will be paid in equal installments of $480,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use Table 3. Round to the nearest whole dollar.On January 1, you win $46,000,000 in the state lottery. The $46,000,000 prize will be paid in equal installments of $5,750,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. The current interest rate is 5%. Determine the present value of your winnings. Round your answer to the nearest dollar. $ fill in the blank 2On January 1, you win $1,440,000 in the state lottery. The $1,440,000 prize will be paid in equal installments of $180,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 6%, determine the present value of your winnings.
- On January 1 you win $3,480,000 in the state lottery. The $3,480,000 prize will be paid in equal installments of $290,000 over 12 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 7%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal installments of $6,000,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use the present value tables in Appendix A.On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.
- Answer each of the following independent questions. 1. You recently won a lottery and have the option of receiving one of the following three prizes: (1) $76,000 cash immediately. (2) $27,000 cash immediately and a six-year annual annuity of $8,500 beginning one year from today, or (3) a six-year annual annuity of $15,800 beginning one year from today. Assuming an interest rate of 7% compounded annually, determine the present value for the above options. Which option should you choose? 2. A company wants to accumulate a sum of money to repay certain debts due in the future. The company will make annual deposits of $145,000 into a special bank account at the end of each of 10 years. Assuming the bank account pays 8% interest compounded annually, what will be the fund balance after the last payment is made in ten years? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers…The winner of a lottery chooses to receive annual payments of $170,000 at the end of each year for 25 years. If the current interest rate is 4.2 %, find the present value (in dollars) of the payments. (Round your answer to the nearest cent. See Example 5 in this section.)Thomas won a lottery that will pay $550000 at the end of each of the next twenty years. Sandhill Finance has offered to purchase the payment stream for $6853000. What interest rate (to the nearest percent) was used to determine the amount of the payment? O 5% O 7% O 6% 8% e Textbook and Media
- Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $20,000 cash immediately and a six-period annuity of $8,000 beginning one year from today, or (3) a six -period annuity of $13,000 beginning one year from today. (FV of $1, PV of $1, FVA of $1, FVAD of $1 and PVAD of $1) Required 2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $100,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030? (Round your final answers to nearest whole dollar amount.) Table or calculator function: __________________ Payment __________________ n =…Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $20,000 cash immediately and a six-period annuity of $8,000 beginning one year from today, or (3) a six -period annuity of $13,000 beginning one year from today. (FV of $1, PV of $1, FVA of $1, FVAD of $1 and PVAD of $1) Required 1. Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose? Annuity PV Annuity Immediate PV Option Payment Cash Option 1 ____________ _________ + __________ = $__________0 Option 2 ____________ _________ + __________ = $ 0 Option 3 ____________ __________ + ___________ =…Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $94,000 cash immediately, (2) $38,000 cash immediately and a six-period annuity of $9,700 beginning one year from today, or (3) a six-period annuity of $19,600 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate of 7%, determine the present value for the above options. Which option should Alex choose?2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $190,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 8% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030?