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Joan Lucky won the $66,000,000 lottery. She is to receive $2.3 million a year for the next 25 years plus an additional lump-sum payment of
Joan Lucky won the $66,000,000 lottery. She is to receive $2.3 million a year for the next 25 years plus an additional lump-sum payment of $8.5 million after 25 years. The discount rate is 11 percent. What is the current value of her winnings? (Use a Financial calculator to arrive at the answer. Round the final answer to the nearest whole dollar.) Current Value If you owe $39,000 at the end of seven years, how much should your creditor accept in payment immediately if she could earn 12 percent on her money? (Use a Financial calculator to arrive at the answer. Round the final answer to the nearest whole dollar.) Present value Cousin Berta invested $130,000 thirteen years ago at 12 percent, compounded quarterly. a. How much has she accumulated? (Use a Financial calculator to arrive at the answer. Round the final answer to the nearest whole dollar.) Future value $ b. What is her effective annual interest rate (rate of return)? (Use a Financial calculator to arrive at the answer. Round the final answer to 2 decimal places.) Effective annual interest rate %
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