Question: On January 1 , you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over 8 years.

On January 1 , you win $50,000,000 in the state lottery.

On January 1 , you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7 . Round to the nearest whole dollar. X Feedback Check My Work Review the time value of money concept. Recall that the time value of money concept recognizes that cash received today is worth more than the same amount of cash to be received in the future

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!

Please Solve all of them, please!!! Thank You So much Present Value of an Annuity On January 1, you win $4,200,000 in the state lottery. The $4,200,000 prize will be paid in equal installments of...

Present Value of Amounts Due Assume that you are going to receive $300,000 in 10 years. The current market rate of interest is 12% a. Using the present value of $1 table in Exhibit 5, determine the...

Present Value of an Annuity On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made...

Present value of an annuity On January 1, you win $43,500,000 in the state lottery. The $43,500,000 prize will be paid in equal installments of $7,250,000 over 6 years. The payments will be made on...

Present Value of an Annuity On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal installments of $6,000,000 over 10 years. The payments will be made on...

Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $26,000,000 of 5-year, 8% bonds to finance its operations. Interest is payable semiannually. The bonds...

Present value of an annuity On January 1, you win $37,500,000 in the state lottery. The $37,500,000 prize will be paid in equal installments of $6,250,000 over six years. The payments will be made on...

Can anyone help me to solve this question asap thank you in advanced Present value of an annuity On January 1, you win $37,500,000 in the state lottery. The $37,500,000 prize will be paid in equal...

Present value of an annuity On January 1, you win $40,250,000 in the state lottery. The $40,250,000 prize will be paid in equal installments of $5,750,000 over seven years. The payments will be made...

please find the right answer. spreadsheet given if needed Present value of an annuity On January 1, you win $46,000,000 in the state lottery. The $46,000,000 prize will be paid in equal installments...

Let p=0.2 be the proportion of smart phone owners who have a given app. For a particular smart phone owner, let x=1 if they have the app and x=0 otherwise. For a random sample of 50owners, complete...

Consumer Reports stated that the mean time for a Chrysler Concorde to go from 0 to 60 miles per hour is 8.7 seconds. (a) If you want to set up a statistical test to challenge the claim of 8.7...

8. Lets revisit the problem of calculating the shoe-leather costs of inflation at Woodrows Hardware. Calculate shoe-leather costs (relative to the original situation, in which Woodrow goes to the...

Identify four different personal safety risks. * In age care and disability

A job candidate answers yes to the question of whether they are a smoker. They are well qualified, but you decide not to hire them. Does the candidate have legal recourse?

Why is substance use a particularly tricky policy within Canadian workplaces?

List the major prohibitions of the Canadian Human Rights Act .