Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You just won the $85 million lottery You will recelve $26 million a year for the next 30 years plus an additional payment of $7

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
You just won the $85 million lottery You will recelve $26 million a year for the next 30 years plus an additional payment of $7 million at the end of 30 years. The interest rate is 6 percent. How much is your lottery prize worth today? (Enter your answer as a positive number rounded to 2 decimal places.) You have just been notified that you will recelve $7.500 a year for the next 18 years from an inherited trust. If the interest rate is 11 percent, how much should you be willing to accept today in exchange for the annual payments? (Enter your answer as a positive number rounded to 2 decimal places.) You have decided to start saving money for your future. What is the future value of a 13 year annuity of $3,000 per year, assuming that you make your first payment today and the interest rate is 11 percent? (Enter your answer as a positive number rounded to 2 decimal ploces.) You need to have $25.856 available at the end of 9 years. How much to do you have invest each year, starting at the end of this year for 9 years to achieve this goal if the interest rate is 8% ? (Enter your answer as a positive number rounded to 2 decimal places.)

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_2

Step: 3

blur-text-image_3

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

Financial Accounting Theory

Authors: William R. Scott

3rd Edition

0130655775, 9780130655776

More Books

Students also viewed these Accounting questions

Question

=+10. Did you clearly project the brand's USP?

Answered: 1 week ago