You have just won a lottery prize of $3,500,000 collectable in 10 yearly installments of $350,000...

 

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You have just won a lottery prize of $3,500,000 collectable in 10 yearly installments of $350,000 starting today. The total present worth of the prize is $2,245,632. Suppose that you have a large mortgage you want to pay off now. You propose an alternative but equivalent payment scheme. You would like $350,000 today and the balance of the prize in six years when you intend to purchase a large piece of waterfront property. How much will the payment be in six years? Assume that annual interest is 11 percent, compounded monthly. $ The payment in six years will be $ (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) You have just won a lottery prize of $3,500,000 collectable in 10 yearly installments of $350,000 starting today. The total present worth of the prize is $2,245,632. Suppose that you have a large mortgage you want to pay off now. You propose an alternative but equivalent payment scheme. You would like $350,000 today and the balance of the prize in six years when you intend to purchase a large piece of waterfront property. How much will the payment be in six years? Assume that annual interest is 11 percent, compounded monthly. $ The payment in six years will be $ (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)

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Answer The given scenario presents a lottery win of 3500000 paid in yearly installments of 350000 Yo... View the full answer