FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have just won the lottery and will receive $530,000 in one year. You will receive payments for 23 years, and the payments will increase

You have just won the lottery and will receive $530,000 in one year. You will receive payments for 23 years, and the payments will increase 5 percent per year. If the appropriate discount rate is 11 percent, what is the present value of your winnings? Multiple Choice $22,876,886 $22,876,886 $48,067 $6,117,776 $6,372,683

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

Accounting Ledger Book

Accounting Ledger Book

Authors: Alpha Planners Publishing

1st Edition

B09VWKPJSG, 979-8432472564

More Books

Students also viewed these Finance questions

Question

★★★★★
Californias Subdivision Map Act (SMA) prohibits the sale of real property until a map of its subdivision is filed with, and approved by, the appropriate state agency. In November 2004, Black Hills...

Answered: 1 week ago

Question

★★★★★
How do I arrive at the correct answer? The cash account shows a balance of $45,000 before reconciliation. The bank statement does not include a deposit of $2, 300 made on the last day of the month....

Answered: 1 week ago

Question

★★★★★
5. Alison is adamant that getting on at Compucan has nothing to do with politics. Do you agree with her?

Answered: 1 week ago

Question

★★★★★
Elana's Traveling Veterinary Services, Inc., completed its first year of operations on December 31. All of the year's entries have been recorded except for the following: a. On March 1 of the current...

Answered: 1 week ago

Question

★★★★★
What is true about mutual funds? a. They are traded freely on an exchange. b. No fees are charged when investing in mutual funds. c. They are actively managed. d. Any income generated from a mutual...

Answered: 1 week ago

Question

★★★★★
Problem 12-05 (Algorithnic) The price of a share of a particular stock listed on the New York Stock Exchange is currently $41. The following probability distribution shows how the price per share is...

Answered: 1 week ago

Question

★★★★★
Exercise 4-8 Wang Company accumulates the following adjustment data at oecember 31. For each item, indicate the (1) type of adjustment (prepaid expense, uneamed revenue, accrued revenue, or accrued...

Answered: 1 week ago

Question

★★★★★
You take out a $225,000 Canadian mortgage with a 15-year amortization period, a 6-year term, and a 9% posted mortgage interest rate. What is your monthly mortgage payment? When the mortgage expires...

Answered: 1 week ago

Question

★★★★★
Which of the following fringe benefits provided by the employer is not taxable to the employee? Multiple Choice Bonus Sick pay 10% discount on products sold by the business, the gross profit...

Answered: 1 week ago

Question

★★★★★
Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months, $2,400 May 5: Received and paid electricity bill, $70 May 9: Received cash for...

Answered: 1 week ago

Question

★★★★★
Problem 2 Use the worksheets Disks and Advertising Model for this problem. Disks, Inc. sells several types of professional Frisbee disks. Mike Smith, the general manager of the company has created an...

Answered: 1 week ago

Question

★★★★★
2. The largest component of GDP is a. consumption. b. investment. c. government purchases. d. net exports.

Answered: 1 week ago

Question

★★★★★
2. What do you think are the defining characteristics of a science? Do you think macroeconomics should be called a science? Why or why not?

Answered: 1 week ago

Question

★★★★★
4. Economists use models because they a. clarify our thinking. b. show how exogenous variables influence endogenous variables. c. are fun. d. all of the above

Answered: 1 week ago

Previous Question Next Question