Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sharon Lee has just won the Lotto. Her prize pays $47200 at the end of each year for 5 years. In addition, she will receive

image text in transcribed Sharon Lee has just won the Lotto. Her prize pays $47200 at the end of each year for 5 years. In addition, she will receive a one-time payment of $283200 at the end of 5 years. Using the following factors at 12%, what amount has Sharon really won in the Lotto? (round to the nearest dollar) Type of Cash Flow Periods Interest Rate Factor PV of $1 5 12% 0.5674 FV of $1 5 12% 1.7623 PV ordinary annuity 5 12% 3.6048 FV ordinary annuity 5 12% 6.3528 PV annuity due 5 12% 4.0374 $669230 $582264 $519200 $330835

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

Cost Management A Strategic Emphasis

Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins

7th edition

77733770, 978-0077733773

More Books

Students also viewed these Accounting questions