Question
In December 2020 25 years old Riya put a bet in a casino and walked away with the biggest jackpot in history - $9.3 million.
In December 2020 25 years old Riya put a bet in a casino and walked away with the biggest jackpot in history - $9.3 million. After winning the same she was approached by friends and relatives for loans to which she responded by saying that the money is not worth exactly $9.3 Million because it had some conditions attached to it. The sum was to be paid in 20 annual instalments of $465,000 each at the end of each year. If that be so
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What is the present value of the jackpot if the interest rate is 8%? - (10 marks)
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What will be the present value of the jackpot if the first instalment is paid upfront and the remaining at the end of each year for the balance period? - (10 marks)
Please show all your workings and the formula used.
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Auditor Essentials 100 Concepts Tips Tools And Techniques For Success
Authors: Hernan Murdock
1st Edition
1138036919, 978-1138036918
