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Posted on Sep 18, 2024

The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last

The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.22 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $61,000 each. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 10% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.) Present value Ose Periods 5% 6% 7 8% 94 50% 10 1 0.962 0.952 0943 0.985 0.926 0907 125 3% 14 158 15% 185 0.909 0901 0.893 0.885 0.877 0.870 0.362 0.855 0347 05400333 0.326 0.820 0.8130306 0.000 19% 225 24 255 2 0.925 0907 0990 0.873 0857 0.842 0.826 0.812 0797 0783 07090756 074 0731 071 0705 0.091 060 0672 0661 0650 0540 3 0.389 0.064 0.840 0.816 0.794 0772 07510731 0712 0.693 06750658 0641 0624 0.009 0590 059 0564 0551 057 0524 950 4 055 0523 0797 0783 0735 07080683 0650 0.636 060 0.592 0572 05:52 0534 05160499 0432 0.657 0.451 0432 0.0 0.40 5 0.822 0.784 0747 0713 0.6810650 0.621 0.593 0.587 053 0519 0.497 0475 0456 0437 0.479 0402 0.06 0.370 0355 0.341 0.328 6 0.790 0746 0.705 0.666 0.630 0.596 0564 0.535 0.507 0.40 0.56 0.432 0.4 0.390 0.300.352 0335 0.319 0.303 0209 0275 0252 7 0760 0711 0.665 0.623 0.583 0547 0.50 0.482 0.452 0425 0.000 0.376 0.354 0.331 0714 0295 0.279 0263 0249 0235 0222 6210 0731 0.677 0627 0.582 0540 0.502 0.467 0234 0464 0.375 0.751 0.37 0.305 0285 0266 0249 0203 021 0204 0.1910190168 9 07030.545 0.592 05440.500 0.460 0424 0391 0.361 0333 0.308 0284 0.263 0203 0225 0.209 0194 09300167 0155 10 0.676 0.614 0.558 0.509 0463 0.422 036 0352 0322 0.295 0270 0247 0227 0208 0191 0176 052 01090137 0126 0116 0144 0134 0102 11 0650 0.585 0.5270475 0.429 0.388 0.350 0317 0 287 0.261 0237 02850195 0173 09520148 0.135 01220112 0103 00 0095 12 0.625 0.557 0.497 0.44 0.397 0.356 0.319 0206 0257 0231 0.209 0987 0.152 0037 0124 0112 0.82 009200B3 007 006 0.601 0.530 0.469 0.45 0.368 0326 0290 0.258 0229 0204 0832 033 035 0170 015 0104 0090 0.054 0.075.0008 006 0055 14 0.577 0.505 0442 0.388 0340 0299 0263 0232 0205 011 0580 041 0125 01 009 0.000 000 000 0002 0055 004 0044 15 0.5550 401 0.417 0.32 0.315 0275 023 0209 0163 0300001230308 0095 0.004 0074 0006 005 0,051 004 0040 0.005 16 0534 0458 0.394 0.3390292 0.252 02100158 03 04 0123 0907 000 000 00710002 0054 00 000 000 000 000 17 0.53 0.436 0371 0.31 0.270 0231 01900170 ON 0195 000 0000 0000 0000 0000 0.052 0.025 0.025 0004 0000 00001 10 0.494 0.4 0.350 0296 0.250 0212 0000153 000 0095 000 0000 0059 005 004 0000 0000 002 0034 0021 cm 19 0.475 0.396 0331 0277 0232 0194 04 008 0196 0000 0000 0000 0000 0.051 000 00:37 0001 0001 002 0.020 on 001 20 0.456 0.377 0.3120258 0.2150178 0901240104 007 007300010051 0003 0.00 0.00 0.022 009 00 0000 21 0439 0359 0294 0242 0199 0.1540135 012 0.093 0077 0064 0.053 0.00 0.037 0.001 0026 0.002 0.0 0.0 0.00 0.000000 22 0422 0.342 0.278 0226 0984 0.1500123 0.101 0.003 0060 0.056 0.045 0.008 0.030 0026 0.002 0.0005 000 0 on 0.009 000 23 0406 0326 0262 0.211 0170 0039 0102 0091 0074 0000 0000 0000 0000 002 0022 001 001 000 000 000 000 000 24 0.390 0.310020070197 01580126080200020006 0.053 000 0005 0.025 0.025 0.019 0:01 000 000 0000 000 000 0005 25 0.375 0.295 0233 0154 05050116 0.092 004 0059 000 0:00 00:30 0024 0020 001 000 000 000 000 000 0005 2004 26 0.361 0281 0220 0172 005 006 0054 000 0000 000 000 0020 000 000 0000 0.000 0 0 0.00 0.00 0.00 0.001 0002 0006 005 000 000 0002 0.3470268 0.207 0.561 0125 0090 0.076 0000 0047 0002 0029 0093 000 000 00m 20 0.33 0255 0196 0950 0.116 0090 0.069 0054 0042 000 0026 0.020 000 000 0010 0000 0000 0.00 0.00 0.00 0.000000 0221 0.2430155 0541 0.107 0002 0.003 0.048 0.037 0.029 0022 0.00 0.014 0011 000 0006 0.005 004 0000 000 000 000 30 03030.231 0174 001 0 099 00750.057.004 0033 0.025 0.0200015 0.012 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10 0.2080142 0097 0.067 0.045 0.032 0.022 0.015 0.01 0.000 0.005 0.004 0.003 0.00 0.00 0.000 0.00 0000 0000 0000 0000 0.000