Question: Please do in Excel and show what formulas you used, thank you!! A lottery pays you $125,000 per year forever, with annual payment starting in

Please do in Excel and show what formulas you used, thank you!!

A lottery pays you $125,000 per year forever, with annual payment starting in one year. How much is this lottery worth for you today, if the interest rate is 4.5% per year?

A) $2,666,667

B) $2,521,212

C) $2,777,778

D) $2,858,122

E) $2,850,000

F) None of the above

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!

Reconsider the overall distance data for golf balls in Exercise 10-29. Is there evidence to support the claim that the standard deviation of overall distance is the same for both brands of balls (use...

Please do in Excel and show which formulas you used, thank you!! Maria just won the lottery and opted to take unending yearly payments. The first payment will be $50,000 in one year from today....

A lottery pays you $125,000 per year forever, with annual payment starting in one year. How much is this lottery worth for you today, if the interest rate is 4.5% per year? A) $2,666,667 B)...

7. A lottery pays you $125,000 per year forever, with annual payment starting in one year. How much is this lottery worth for you today, if the interest rate is 4.5% per year? A) $2,666,667 B)...

When you purchased your house, you took out a 30-year annual-payment mortgage with an interest rate of 6% per year. The annual payment on the mortgage is $12,000. You have just made a payment and...

Hello. I'm looking for some help completing my finance project. (10% total course grade) There are quite a few questions. (40 total) I can check the answers one time before submitting. Hoping for...

Please help me with all three need help ASAP. Thank you. You are thinking of building a new machine that will save you $1,000 in the first year. The machine will then begin to wear out so that the...

IfyouhaveplayedaSimulationcalledProBankerIneedhelpansweringthesequestionsassoonaspossible from the pro bankerassignment attachment..please use spreadsheet and players manual for reference. Need...

Please help, also could you show the formulas as well. Please help. Does it look better now, the first excel sheet goes all the up to 12 & then the total. please Sprinkles Ice Cream Shoppe Please...

Hello please answer to the following question. good luck 29. Annuities. You can buy a car that is advertised for $24,000 on the following terms: (a) pay $24,000 and receive a $2,000 rebate from the...

please make an excel and show how you were able to do it. For sheet 1 after the grading criteria, how do i find COGS, the total wages is wrong, and the rest of the blank cells. For the startup costs,...

In a study of the effects of radiation on amphibian embryos titled Shedding Light on Ultraviolet Radiation and Amphibian Embryos (BioScience, Vol. 53, No. 6, pp. 551561), L. Licht recorded the time...

Machine A has been completely overhauled for$9000 and is expected to last another 12 years. The $9000 was treated as an expense for tax purposes last year. Machine A can be sold now for $30,000 net...

ill lives in Bowmanville, Ontario, and is working full time as a Customer Service Representative at CIBC in Mississauga, which is located 5 1 km from her home. She often drives to the family cottage...

Which one of the following is an example of a flexible short-term financial policy? Multiple choice question. Allowing no credit sales Low investment in marketable securities Making large investments...