Appendix B:
Appendix D:
Joan Lucky won the $56 million lottery. She is to receive $1.7 million a year for the next 25 years plus an additional lump-sum payment of $13.5 million after 25 years. The discount rate is 9 percent. What is the current value of her winnings? Use Appendix B and Appendix D. (Provide answers in terms of millions of dollars. Round "PV Factor" to 3 decimal places. Round the final answer to the nearest whole dollar.) Current Value APPENDIX B Present Value of $1, PV. PV = FV[27.-) = FV(1 + i) Period 1......... 2 3 5 6 7 8 9 10. 11 12. 13. . 14. 14 15. 15 13 16. 17 1 18. 10 19. 19 20. 25 30 40 1% 0.990 0.980 0.971 0.961 - 0.951 0.942 0.933 0.923 0.914 0.905 0.896 00 0.887 070 0.879 0.870 0.861 W.833 0.853 0.844 0.836 . 0.828 0.00 0.820 0.780 0.742 0.672 0.608 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 004 0.804 0.788 20g 0.773 0.758 0.743 0.728 W.120 0.714 W. 0.700 Waru 0.686 0.673 0.610 0.552 0.453 0.372 3% 0.971 0.943 0.915 0.885 0.863 0.837 0.813 0.789 0.766 0.744 799 0.722 0.701 61 0.681 0.661 0.642 0.623 0.605 0.00 0.587 9.30 0.570 Wom 0.554 0.478 0.412 0.307 0.228 4% 0.962 0.925 0.889 0.855 0.822 Vue 0.790 0.760 Varde 0.731 0.703 ene 0.676 650 0.650 695 0.625 0.601 0.577 0.555 0.234 0.534 0.513 0.494 0.475 0.173 0.456 0.375 0.308 0.208 0.141 5% 0.952 0.907 0.864 0.823 0.784 Waren 0.746 0.711 0.677 0.645 0.614 505 0.585 0.557 552 0.530 0.505 0.30 0.481 0.101 0.458 W.158 0.436 0.416 10 1.030 0.396 0.377 Ver 0.295 0.231 0.142 0.087 Percent 6 0.943 0.890 0.840 0.792 -- 0.747 0.705 0.665 0.627 0.592 BO 0.558 532 0.527 102 0.497 0.469 0.442 0.442 0.417 0.117 0.394 . 0.371 0.350 0,331 . 0.312 0.233 0.174 0.097 0.054 7% 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.544 500 0.508 425 0.475 0.444 15 0.415 0.388 0.362 0.339 0.317 V. 0.296 0.277 0.258 0.184 0.131 0.067 0.034 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 Vio 0.540 0.500 en 0.463 90 0.429 0207 0.397 268 0.368 0.340 0.315 0.292 0.270 0.250 V. 0.232 wa 0.215 0.146 0.099 0.046 0.021 9% 0.917 0.842 0.772 0.708 0.650 0.596 0.547 0.502 0.460 19 0.422 200 0.388 0256 0.356 0326 0.326 0909 0.299 0275 0.275 0.252 W.252 0.231 w 0.212 wana 0.194 0.178 0.116 0.075 0.032 0.013 10% 0.909 0.826 0.751 0.683 w 0,621 Wade 0.564 0.513 0.467 10 0.424 208 0.386 20 0.350 10 0.319 200 0.290 22 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.092 0.057 0.022 0.009 11% 0.901 0.812 0.731 0.659 wo 0.593 0.535 0.482 V-704 0.434 0.391 0259 0.352 21 0.317 205 0.286 0.258 0.232 0.209 0.188 0.170 0.153 V. 0.138 0.124 0.074 0.044 0.015 0.005 50........ Period 1......... 2 3 4 5 6 7 8 9 10 11 12 12 13 14 15 15 16 17 18 19 20 25 30 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 2 0.229 205 0.205 192 0.183 0.163 0.146 0.130 Wato 0.116 0.104 0.059 0.033 0.011 0.003 13% 0.885 0.783 0.693 0,613 0.543 0.480 0.425 0.376 0.333 20 0.295 0.261 0991 0.231 0.204 101 0.181 0.160 0.141 0.125 0.111 0.098 0.087 0.047 0.026 0.008 0.002 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.300 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 0.038 0.020 0.005 0.001 15% 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 0.215 0.187 10 0.163 0.141 0.123 0.107 0.093 0.081 0.070 0.061 0.030 0.015 0.004 0.001 16% 0.862 0.743 0.641 0.552 4 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 195 0.125 0.108 0.093 0.080 0.069 0.060 0.051 0.024 0.012 0.003 0.001 17% 0.855 0.731 0.624 0.534 0.456 0.390 0.333 0.285 0.243 0.208 0.178 0.152 120 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.043 0.020 0.009 0.002 0 Percent 18% 0.847 0.718 0.609 0.515 0.437 0.370 0.314 0.266 0.225 1 0.191 0.162 0.137 0.116 000 0.099 0.084 004 0.071 0.060 0.051 0.043 0.037 0.016 0.007 0.001 0 19% % 0.840 0.706 0.593 0.499 0.419 0.352 0.296 0.249 0.209 0.176 0.148 0.124 0.104 0.088 0.074 0.062 0.052 0.044 0.037 0.031 0.013 0.005 0.001 0 20% 0.833 0.694 0.579 0.482 10 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 000 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026 0.010 0.004 0.001 0 25% 0.800 0.640 0.512 0.410 0.320 0.262 0.210 0.168 0.134 1- 0.107 0.086 0.069 0.055 , 0.044 025 0.035 0.028 0.023 0.018 0.018 0.014 0.012 0.004 0.001 0 0 30% 0.769 0.592 0.455 0.350 0.269 0.207 0.159 0.123 0.094 0.073 0.056 0.043 0.033 095 0.025 09 0.020 0.015 0.012 0.009 0.007 0.005 0.001 0 0 0 35% 0.741 0.549 0.406 0.301 0.223 0.165 0.122 0.091 0.067 0.050 0.037 0.027 0.020 05 0.015 0.011 0.008 0.006 0.005 0.003 0.002 0.001 40% 0.714 0.510 0,364 0.260 0.186 0.133 0.095 0.068 0.048 0.035 0.025 0.018 012 0.013 0.009 0.006 0.005 0.003 0.002 0.002 0.001 0 0 50% 0.667 0.444 0.296 0.198 0.132 0.088 0.059 0.039 0.026 0.017 11 0.012 0.008 0.005 0.003 0.002 0.002 0.001 0.001 0 0 0 0 40........ 50...... 0 0 0 0 0 0 0 Note: Factor calculation with calculator Sot FV-1 Sot PMT -0 SoloctN-number of required periods Select | JY = required intorost rate COMO PV - ? Excel Spreadsheet PV, FV. O) 1-Decimal or 1 - For beginning of period (5th spot) APPENDIX D Present Value of an Annuity of $1, PVFX PV, -A [+]-41-419] Period 1.... 2 3 5 6 7 8 9 10. 11 12 13. 14 15 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.799 6.728 7.652 8.566 war 9.471 10.368 0.000 11.255 12.134 1 13.004 * 13.865 14.718 *** 15.562 10.00 16.398 17.226 18.046 22.023 25.808 32.835 39.196 2% 0.980 1.942 2.884 3.808 , -, 4.713 5.601 6.472 7.325 8.162 8.983 w 9.787 W.10 10.575 11.348 12.106 . 12.849 13.578 wo 14.292 14.992 15.678 16.351 19.523 22.396 27.355 31.424 3% 0.971 1.913 2.829 3.717 4.580 5.417 6.230 6.230 7.020 7.786 8.530 9.253 Web 9.254 9.954 10.635 0.0 11.296 11.20 11.938 12.561 13.166 13.754 14.324 14.877 17.413 19.600 23.115 25.730 0.962 1.886 2.775 3.630 4.452 - 5.242 6.002 6.733 7.435 8.111 0. 8.760 0.760 9.385 9.385 9.986 wa 10.563 11.118 no 11.652 " 12.166 12.659 13.134 13.590 15.622 17.292 19.793 21.482 5% 0.952 1.859 2.723 2 3.546 4.329 5.076 5.786 6.463 7.108 7.722 ra 8.306 0.0 8.863 0.00 9.394 W.33 9.899 10.380 . 10.838 10.03 11.274 11.690 12.085 12.462 14.094 15.372 17.159 18.256 Percent 6% 0.943 1.833 2.673 3.465 4.212 11 4.917 5.582 6.210 6.802 7.360 ...360 7.887 6.087 8.384 0.00% 8.853 9.295 9.712 10.106 10.477 10.828 11.158 11.470 12.783 13.765 15.046 15.762 7% 0.935 1.808 2.624 25 3.387 4.100 4.767 5.389 5.971 6.515 7.024 7.499 7.943 8.358 8.745 9.108 9.447 W. 9.763 10.059 10.336 10.594 11.654 12.409 13.332 13.801 8% 0.926 1.783 2.577 3.312 3.993 4.623 5 2016 5.206 5.747 6.247 0.24 6.710 7.139 139 7.536 1.336 7.904 1.909 8.244 w 8.559 8.851 20 9.122 9.372 9.604 9.818 10.675 11.258 11.925 12.233 9% 0.917 1.759 2.531 2220 3.240 3.890 4.486 5.033 5.535 5.535 5.995 wars 6.418 . 6.805 we 7.161 7.487 ***0 7.786 8.061 8.313 8.544 8.756 8.950 9.129 9.823 10.274 10.757 10.962 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.335 5.759 . 6.145 6.495 we 6.814 7.103 allo 7.367 7.606 7.824 8.022 8.201 8.365 8.514 9.077 9.427 9.779 9.915 11% 0.901 1.713 2.444 3.102 cos 3.696 4.231 4.712 5.146 5.146 W3S 5.537 5.889 w.. 6.207 D.com 6.492 WS 6.750 6.982 7.191 * 7.379 7.549 7.702 7.839 7.963 8.422 8.694 8.951 9.042 16 1 17 18. 19 20 25 30 40 50...... Perlod 509 1......... 2. 3. 4 5 6 7 8 9 10. 11 12. 13.. 14. 15.. 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7.102 7.250 7.366 7.469 2013 7.843 8.055 8.244 8.304 13% 0.885 1.668 1.000 2.361 2.974 3.517 3.998 4.423 4.799 5.132 5.426 5.687 5.918 wir 6.122 6.302 6.462 6.604 6.729 6.840 6.938 7.025 7.330 7.496 7.634 7.675 14% 0.877 1.647 2.322 24 2.914 3.433 3.889 4.288 4.639 4.946 5.216 wo 5.453 w 5.660 w 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 6879 6.873 7.003 7.105 7.133 15% 0.870 1.626 2.283 2.855 3.352 3.784 4.160 4.487 ***** 4.772 - 5.019 wa 5.234 5.421 5.583 5.724 5.847 For 5.954 6.047 6.128 6.198 6.259 ene 6.464 6.566 6.642 6.661 16% 0.862 1.064 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.668 5.749 5.818 5.877 090 5.929 6.092 6.097 6.177 6.233 6.246 17% 0.855 5.000 1.585 2.210 san 2.743 3.199 3.589 3.922 4.207 4.451 4.659 4.836 4.988 1.00 5.118 5.229 5.324 5.405 5.475 5.534 re 5.584 5.628 5.766 5.829 5.871 5.880 Percent 18% 19% 0.847 0.810 w 300 1.566 1.547 2.174 2.140 SI 2.690 2.639 3.127 3.058 3.498 3.410 3.812 3.706 4.078 3.954 4.303 4.163 4.494 4.339 4.656 4.486 4.793 4.611 * 4.910 4.715 5.008 4.802 5.092 4.876 5.162 4.938 5.222 4.988 5.273 5.033 5.316 5.070 5.353 5.101 5.467 5105 5.195 5.517 5.235 5.548 5.258 5.554 5.262 20% 0.833 1.528 . 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.843 4.870 4.948 4.979 4.997 4.999 25% 0.800 1.440 " 1.952 2.362 2.689 2.951 3.161 3.329 3.463 3.571 3.656 wa 3.725 3.780 3.824 3.859 3.887 3.910 3.928 3.942 20 3.954 3.985 3.995 3.999 4.000 30% 0.769 0.769 1.361 1.36 1.816 2.166 2.436 2.643 2.802 2.925 3.019 3.092 3.147 w 3.190 w 3.223 3.249 3.268 3.283 3.295 3.304 3.311 3.316 220 3.329 2299 3.332 3.333 3.333 35% 0.741 1.289 1.696 1.997 2.220 2.385 2.508 2.598 2.665 2.715 2.752 2.779 2.799 2.814 2.825 2.834 2.840 2.844 2.848 2050 2.850 2.856 2.857 40% 0.714 0.71 1.224 1.224 1.589 1.849 2.035 2.168 2.263 2.331 2.379 2.414 2.438 2.456 . 2.469 2.478 2.484 2.489 2.492 2.494 2.496 2.497 2.499 2.500 2.500 2.500 0.66 1.11 1.40 1.60 1.731 1.82 1.88 1.92 1.94 1.96 1.971 1.985 1.990 1.993 1.99 1.99 1.99 1.999 1.999 1.999 200 2.000 2.000 2.000 2.000 16... 17 18. 19 20 25 30 40 50..... 2.857 2.857 If annuity in advance, cakulato factor with BGN set on calculator Note: Factor calculation with calculator Set PMT -1 Set FV-0 Select LN-number of required periods Select Y-required interest rate COMPU PV - ? Excel Spreadsheet PV, O, PMTO) 1 - Decimal or 1- For beginning of period (5th spot)
