Congratulations! You have just won $2 billion in the largest Powerball jackpot payoff ever! You will...

 

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Congratulations! You have just won $2 billion in the largest Powerball jackpot payoff ever! You will receive payments of $100,000,000 per year for the next 20 years. Use Table 6-5. Note: Use appropriate factor from the table provided. Required: Calculate the present value of your lottery winnings, assuming an interest rate of 4%. Note: Round your answer to the nearest whole dollar. Present value Table 6-5: Factors for Calculating the Present Value of an Annuity of $1 Number of Periods 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 2% 4% 6% 0.980 0.9615 0.9434 1.942 1.8861 1.8334 2.884 2.7751 2.6730 3.808 3.6299 3.4651 4.713 4.4518 4.2124 5.601 5.2421 4.9173 6.472 6.0021 5.5824 325 6.732 6.2098 8.162 7.4353 6.8017 8.983 8.1109 7.3601 9.787 8.7605 7.8869 10.575 9.3851 8.3838 11.348 9.9856 8.8527 12.106 10.5631 9.2950 12.849 11.1184 9.7122 13.578 11.6523 10.1059 14.292 12.1657 10.4773 14.992 12.6593 10.8276 15.678 13.1339 11.1581 16.351 13.5903 11.4699 17.011 14.0292 11.7641 17.658 14.4511 12.0416 18.292 14.8568 12.3034 18.914 15.2470 12.5504 19.523 15.6221 12.7834 22.396 17.2920 13.7648 24.999 18.6646 14.4982 27.355 19.7928 15.0463 29.490 20.7200 15.4558 31.424 21.4822 15.7619 Discount Rate 8% 10% 12% 0.9259 0.9091 0.8929 1.7833 1.7355 1.6901 2.5771 2.4869 2.4018 3.3121 3.1699 3.0373 3.9927 3.7908 3.6048 4.6229 4.3553 4.1114 5.2064 4.8684 4.5638 5.7466 349 4.9676 6.2469 5.7590 5.3282 6.7101 6.1446 5.6502 7.1390 6.4951 5.9377 7.5361 6.8137 6.1944 7.9038 7.1034 6.4235 8.2442 7.3667 6.6282 8.5595 7.6061 6.8109 8.8514 7.8237 6.9740 9.1216 8.0216 7.1196 9.3719 8.2014 7.2497 9.6036 8.3649 7.3658 9.8181 8.5136 7.4694 10.0168 8.6487 7.5620 10.2007 8.7715 7.6446 10.3711 8.8832 7.7184 10.5288 8.9847 7.7843 10.6748 9.0770 7.8431 11.2578 9.4269 8.0552 11.6546 9.6442 8.1755 11.9246 9.7791 8.2438 12.1084 9.8628 8.2825 12.2335 9.9148 8.3045 14% 0.8772 1.6467 2.3216 2.9137 3.4331 3.8887 4.2883 4.6389 4.9464 5.2161 5.4527 5.6603 5.8424 6.0021 6.1422 6.2651 6.3729 6.4674 6.5504 6.6231 6.6870 6.7429 6.7921 6.8351 6.8729 7.0027 7.0700 7.1050 7.1232 7.1327 16% 18% 0.8621 0.8475 1.6052 1.5656 2.2459 2.1743 2.7982 2.6901 3.2743 3.1272 3.6847 3.4976 4.0386 3.8115 3436 4.0776 4.6065 4.3030 4.8332 4.4941 5.0286 4.6560 5.1971 4.7932 5.3423 4.9095 5.4675 5.0081 5.5755 5.0916 5.6685 5.1624 5.7487 5.2223 5.8178 5.2732 5.8775 5.3162 5.9288 5.3527 5.9731 5.3837 6.0113 5.4099 6.0442 5.4321 6.0726 5.4509 6.0971 5.4669 6.1772 5.5168 6.2153 5.5386 5.5482 5.5523 5.5541 6.2335 6.2421 6.2463 20% 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.3271 4.4392 4.5327 4.6106 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9094 4.9245 4.9371 4.9476 4.9789 4.9915 4.9966 4.9986 4.9995 Congratulations! You have just won $2 billion in the largest Powerball jackpot payoff ever! You will receive payments of $100,000,000 per year for the next 20 years. Use Table 6-5. Note: Use appropriate factor from the table provided. Required: Calculate the present value of your lottery winnings, assuming an interest rate of 4%. Note: Round your answer to the nearest whole dollar. Present value Table 6-5: Factors for Calculating the Present Value of an Annuity of $1 Number of Periods 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 2% 4% 6% 0.980 0.9615 0.9434 1.942 1.8861 1.8334 2.884 2.7751 2.6730 3.808 3.6299 3.4651 4.713 4.4518 4.2124 5.601 5.2421 4.9173 6.472 6.0021 5.5824 325 6.732 6.2098 8.162 7.4353 6.8017 8.983 8.1109 7.3601 9.787 8.7605 7.8869 10.575 9.3851 8.3838 11.348 9.9856 8.8527 12.106 10.5631 9.2950 12.849 11.1184 9.7122 13.578 11.6523 10.1059 14.292 12.1657 10.4773 14.992 12.6593 10.8276 15.678 13.1339 11.1581 16.351 13.5903 11.4699 17.011 14.0292 11.7641 17.658 14.4511 12.0416 18.292 14.8568 12.3034 18.914 15.2470 12.5504 19.523 15.6221 12.7834 22.396 17.2920 13.7648 24.999 18.6646 14.4982 27.355 19.7928 15.0463 29.490 20.7200 15.4558 31.424 21.4822 15.7619 Discount Rate 8% 10% 12% 0.9259 0.9091 0.8929 1.7833 1.7355 1.6901 2.5771 2.4869 2.4018 3.3121 3.1699 3.0373 3.9927 3.7908 3.6048 4.6229 4.3553 4.1114 5.2064 4.8684 4.5638 5.7466 349 4.9676 6.2469 5.7590 5.3282 6.7101 6.1446 5.6502 7.1390 6.4951 5.9377 7.5361 6.8137 6.1944 7.9038 7.1034 6.4235 8.2442 7.3667 6.6282 8.5595 7.6061 6.8109 8.8514 7.8237 6.9740 9.1216 8.0216 7.1196 9.3719 8.2014 7.2497 9.6036 8.3649 7.3658 9.8181 8.5136 7.4694 10.0168 8.6487 7.5620 10.2007 8.7715 7.6446 10.3711 8.8832 7.7184 10.5288 8.9847 7.7843 10.6748 9.0770 7.8431 11.2578 9.4269 8.0552 11.6546 9.6442 8.1755 11.9246 9.7791 8.2438 12.1084 9.8628 8.2825 12.2335 9.9148 8.3045 14% 0.8772 1.6467 2.3216 2.9137 3.4331 3.8887 4.2883 4.6389 4.9464 5.2161 5.4527 5.6603 5.8424 6.0021 6.1422 6.2651 6.3729 6.4674 6.5504 6.6231 6.6870 6.7429 6.7921 6.8351 6.8729 7.0027 7.0700 7.1050 7.1232 7.1327 16% 18% 0.8621 0.8475 1.6052 1.5656 2.2459 2.1743 2.7982 2.6901 3.2743 3.1272 3.6847 3.4976 4.0386 3.8115 3436 4.0776 4.6065 4.3030 4.8332 4.4941 5.0286 4.6560 5.1971 4.7932 5.3423 4.9095 5.4675 5.0081 5.5755 5.0916 5.6685 5.1624 5.7487 5.2223 5.8178 5.2732 5.8775 5.3162 5.9288 5.3527 5.9731 5.3837 6.0113 5.4099 6.0442 5.4321 6.0726 5.4509 6.0971 5.4669 6.1772 5.5168 6.2153 5.5386 5.5482 5.5523 5.5541 6.2335 6.2421 6.2463 20% 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.3271 4.4392 4.5327 4.6106 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9094 4.9245 4.9371 4.9476 4.9789 4.9915 4.9966 4.9986 4.9995

Answer rating: 100% (QA)

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