Question: Kara won $ 3 , 0 0 0 , 0 0 0 , which will be paid after twenty years. If the interest rate is

Kara won $3,000,000, which will be paid after twenty years. If the interest rate is 5% compounded annually, the present value of the
amount is
$37,386,630.
$3,000,000.
$1,130,667.
$7,959,900.
Kara won $3,000,000, which will be paid after twenty years. If

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 Finance Questions!

Q:

Present Value 8-36. What is the amount you have to invest today at 4 percent annual interest to be able to receive $10,000 after a. 5 years? b. 10 years? c. 20 years? Future Value 8-37. How much...

Q:

Question 10 What is the future value of the mixed cash flow pattern as below, at the end of year 8, assuming a 3.8% interest rate (compounded annually]? End of year Cash Flow 3 1,551 5 2,788 8 3,336...

Q:

0 Question 8 8 0\" pt 0 3 4G 99 6) Details An exponential function f(:l:} = all: passes through the points (0, 8) and {3, 64]. What are the values of a and 0? Question Help: El Video Submit Question...

Q:

Question 7 (1.5 points) Sally's assessable income for 2021/22 is $133000. She has $742 allowable deduction. How much is Sally's individual income tax payable? Taxable Income Tax on this income 0 -...

Q:

0 Question 5 B 0/1 pt '0 3 23 19 G) Details Chan has just invested in a stock worth $190 that is expected to grow by a rate of 11% per year, compounding monthly. Write the equation used to determine...

Q:

Question 7 (1.5 points) Sally's assessable income for 2021/22 is $133000. She has $742 allowable deduction. How much is Sally's individual income tax payable? Taxable Income Tax on this income 0 -...

Q:

Consider a two-period tree for the one-year interest rate compounded annually) where the length of a period is one year. The tree is shown below. jli 0 1 0 0.04 0.05 0.03 (a) Compute the value of a...

Q:

Question 3 You friend went back to his engineering books and realized that he forgot to account for the growth rate of the well's production. He adjusted his model, and now he believes that the...

Q:

2. [3 points). Harmac Medical Products, Inc. is a medical device contract manufacturer in the Buffalo area. They are considering purchasing a new blow molding machine to produce an innovative medical...

Q:

A pharmaceutical company will spend $2,000,000 each year for 3 years to develop a new drug (years 0, 1, 2). After that (starting year 3), they will earn $800,000 in profits per year for the next 10...

Q:

Company S is 80% owned by Company P. Near the end of 2011, Company S sold merchandise with a cost of $6,000 to Company P for $7,000. Company P sold the merchandise to a nonaffiliated firm in 2012 for...

Q:

Kiko Teddy Bear is a manufacturer of stuffed teddy bears. Kiko would like to be able to produce 40 teddy bears per hour on its assembly line. Use the information provided in Table to answer the...

Q:

In a debt-service fund, interest on long-term debt is generally ______. Multiple choice question. accrued and recognized as an expenditure at the end of the fiscal year recognized as an expenditure...

Q:

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.