Question: John won a lottery that will pay him $450000 at the end of each of the next twenty years. Assuming an appropriate interest rate is

John won a lottery that will pay him $450000 at the

John won a lottery that will pay him $450000 at the end of each of the next twenty years. Assuming an appropriate interest rate is 6% compounded annually, what is the present value of this amount? Click here to view factor tables $5161464. $16553516. $5471151 $140310

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Qtr 3 Below is the projected financial information for Daisy Digital Data (DDD) for the next four quarters: 0 Qtr 1 Qtr 2 Qtr 4 Year Total Sales 11,000 13,000 15,000 10,000 49,000 COGS 7,000 8,400...

1. If you deposit $4000 into an account paying 6% annual interest compounded quarterly, how much money will be in the account after 5 years? 2. If you deposit $6500 into an account paying 8% annual...

1-4.Find the total periodic charge to retire a P38,600 debt with quarterly payments for 5 years, using the following plans: a) Amortized at 8%(4) b) Loan at 8%(4) with a sinking fund at 5%(4) c) Loan...

Robert won a lottery that will pay him $420000 at the end of each of the next twenty years. Assuming an interest rate is 7% compounded annually, what is the present value of this amount?...

Gary won a lottery that will pay him $650000 at the end of each of the next twenty years. Assuming an interest rate is 9% compounded annually, what is the present value of this amount? O $33254078 O...

Chris won a lottery that will pay him $510000 at the end of each of the next twenty years. Assuming an interest rate is 8% compounded annually, what is the present value of this amount? $109421...

Donald won a lottery that will pay him $550000 at the end of each of the next twenty years. Assuming an interest rate is 9% compounded annually, what is the present value of this amount

If you save RM 1,000 today in a bank with simple interest rate of 3% per annum, calculate the total amount after three years. Question 1 options: a. RM1,090 b. RM1,030 c. RM1,060 d. RM1,120 Question...

Question 2 (2 points) If we deposit RM5,000 at the end of each year for the next 5 years with an interest of 6% compounded annually, the amount which will accumulate is __________. Question 2...

Davidwon a lottery that will pay him $450000at the end of each of the next twenty years. Assuming an appropriate interest rate is6% compounded annually, what is the present value of this amount?...

I dont need it anymore I figured it out thank you Monica wants to sell her share of an investment to Borney for $56,000 in four years. If money is worth 6% compounded semiannually, what would Monica...

With respect to the Armadillo Foods case in this chapter, lets assume that the controller is instructed by the CFO that to make the numbers the company must increase EPS by $.02 per share. This...

The cabin of a business jet has a cabin height 5 feet 9 inches high. If a business traveler's height is N(59100, 2.70), what percentage of the business travelers will have to stoop?

What is the use of an option on a foreign currency? Group of answer choices To translate foreign currency financial statements. To hedge foreign exchange risk. To mitigate political risk. To give...

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

Discuss what role the government has in the area of executive pay. Ensure you update yourself on the latest developments in this area before answering this question.

Consider the advantages and diffi culties of using the bank competency form ( Figure 5.6 ) from the viewpoint of the manager and the person being appraised.

In the Meteor case study, what would be the outcomes of the new pay system that would make employees very unhappy with the new system?