Question: Smith has won his state lottery. He will receive a total of $2,000,000 in twenty payments of $100,000 each. He will receive the first payment

Smith has won his state lottery.

He will receive a total of $2,000,000 in twenty payments of $100,000 each.

He will receive the first payment now, and subsequent payments at one-year intervals.

What is the present value of Smith's winnings, at an annual interest rate of 10%?

someone help?

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:

Accounting or Bonds Sold at a Discount The Biltmore National Bank raised capital through the sale of $140 million face value of eight percent coupon rate, ten-year bonds. The bonds paid interest...

Q:

Smith has won his state lottery. He will receive a total of $2,000,000 in twenty payments of $100,000 each. He will receive the first payment now, and subsequent payments at one-year intervals. What...

Q:

Smith has won his state lottery. He will receive a total of $2,000,000 in twenty payments of $100,000 each. He will receive the first payment now, and subsequent payments at one-year intervals. What...

Q:

Hi again. Please help me once more with my study information. I have provided three assignments. Let me know if you need additional information. \fFINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition...

Q:

1. You are a freshman in high school reviewing your options for tuition at the state university. Tuition is $9,000 per year now and is expected to grow by 3.0% per year for the foreseeable future....

Q:

I need the answers to all of the questions in this study guide as soon as possible. I've gotten most of them, but am running out of time. ACCT 301: Financial Accounting - 2011 MBA, CPA (NY) Final...

Q:

Can you please help me with Problem # 2 and 4 in excel. Thank you! AFF 210 ASSIGNMENT ONE SUMMER 2017 STUDENT #1, NAME: ______________________ STUDENT NUMBER: ___________ STUDENT #2, NAME:...

Q:

Hi can you help me with Problem 5 please. Thanks. I don't understand how to do 5b and I don't know if i got the right price for Bond B. AFF 210 ASSIGNMENT ONE SUMMER 2017 = STUDENT #1, NAME:...

Q:

INVES TO R BULLETIN What Are Corporate Bonds? The SECs Oice offnuestor Education undAdvocucy is issuing dais Investor Bulletin to 01%?" basic inrmurion uour corpamte imnds. What is a corporate bond?...

Q:

hello! we could use some help on 9 and 13. we did 9, but were not sure if its right. TBA, Inc., manufactures and sells concrete block for residential and commercial building. TBA expects to sell the...

Q:

MULTIPLE CHOICE 1 Using the recurrence relation t0 = 8, tn+1 = tn + 9, the sixth term would be: A 2 15 B 17 C 23 D 53 E 62 A canoe costs $40 to hire for the first day and $30 for each extra day. If...

Q:

Select the precipitate that forms when the following reactants are mixed. Na 2 CO 3 ( aq ) + BaCl 2 ( aq ) A. Ba 2 CO 3 B. BaCO 3 C. NaCl D. NaCl 2 E. BaO

Q:

Glenview Hardware had the following transactions that produced liabilities during 2009: a. Purchased merchandise on credit for $20,000. b. Year-end wages of $7,600 incurred, but not paid. Related...

Q:

Why do firms hold inventories?

Q:

1). Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to...

Q:

Ms. Brenda Fisher has been employed for many years as a computer technician in Vancouver, British Columbia. Her employer is a large publicly traded Canadian company. During 2018, Ms. Brenda Fishers...

Q:

Leigh Meadows and Byron Leef formed a partnership in which the partnership agreement provided for salary allowances of 54,000 and 48,000, respectively. Determine the division of a $27,000 net loss...

Q:

Nell, single and age 38, had the following income and expense items in 2013: Non-business bad debt . $6,000 2,000 Business bad debt . . Non-business long-term capital gain . 4,000 Non-business...

Q:

In February 2017, Sheridan Construction signed a contract and commenced construction on a parking garage. The total contract price was $90.9 million, and was expected to be completed in July 2021 at...

Q:

Realiza un cuadro comparativo donde analices y expliques: Las diferencias y semejanzas entre los diferentes tipos de auditora incluyendo la auditoria adminstrativa

Q:

Timeline for final evaluation

Q:

How will it be used?

Q:

d. What individual stress management strategies could you use to counteract the effects of this stress?