Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please hurry will upvote! You have won $1,100,000 in a lottery. Your winnings will be paid to you in equal annual year - end installments

please hurry will upvote!
image text in transcribed
You have won $1,100,000 in a lottery. Your winnings will be paid to you in equal annual year - end installments of $220,000 over 5 years. You estimate that you can earn 6% on your investments. The present value of $1 for 5 periods at 6% is 0.747 . The present value of an ordinary annuity of $1 for 5 periods at 6% is 4.212 . The present value of your $1,100,000 winnings would be closest to: A. $926,640 B. $821,700 C. $1,100,000 D. $164,340

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Why And How Of Auditing Auditing Made Easy

Authors: Charles B. Hall

1st Edition

0578519739, 978-0578519739

More Books

Students also viewed these Accounting questions

Question

What is the purpose of the Occupational Safety and Health Act?

Answered: 1 week ago

Question

Discuss globalization issues for small to medium-sized businesses.

Answered: 1 week ago