Enter the following on the answer sheet: the section of the worksheet used, the amount of the payment(s), the interest rate, the number of periods or payments, the timing of the first payment (if applicable) and the answer.

NOTE: All interest rates shown in the exercises are annual rates. Also assume that interest is compounded annually unless indicated otherwise.

Siegfried Opera House has a $1,000,000 lottery. It conducts a drawing when sufficient funds have accumulated. The winner receives $50,000 each year for 20 years. The first check is awarded immediately to the winner. The remaining 19 checks are issued annually. If Siegfried can earn 10% interest on the funds, how much must it have on hand before it can hold a drawing? PLEASE SHOW ALL WORK AND FORMULA USED IN EXCEL!!!!

	Table Used	Payment amount	number of periods	interest rate	first payment	Answer
Exercise 7
a	PV Annuity	50000	20	10.00%	X	$468,246