Question

Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates

Jackpot Amount   Interest Rate (%)   Equal Annual Payments
14,000,000 6 20
14,000,000 13 20
14,000,000 6 25
14,000,000 13 25

Answer 1

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W ENG 00:27 01-08-2020 66 34 Х E861 fc . A B C D E F G H 840 841 CASES OF ANNUITY DUE 842 843 CASE 1 PV = 14000000 844 RATE = 6% 845 NO OF YEARS = 20 846 847 PV = PMT*(1/r)*(1-(1/(1+r)^n))*(1+r) 848 14000000 = PMT*(1/0.06)*(1-(1/(1+0.06)^20))*(1+0.06) 849 14000000 = PMT*12.15811649 850 PMT = 14000000 /12.15811649 851 ANSWER PMT = 1151494.15 852 853 CASE 2 PV = 14000000 854 RATE = 13% 855 NO OF YEARS = 20 856 857 PV = PMT*(1/r)*(1-(1/(1+r)^n))*(1+r) 858 14000000 = PMT*(1/0.13)*(1-(1/(1+0.13)^20))*(1+0.13) 859 14000000 = PMT*7.937969283 860 PMT =14000000 /7.937969283 861 ANSWER PMT = 1763675.26 862 863 pv, fv, annuity CAP STRU VALUE PM, PMT loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPO NPER APR CPI ear FVA s2 pva

D W ENG 00:30 01-08-2020 66 34 Х A886 . A B с D E F G H 863 864 CASE 3 PV = 14000000 865 RATE = 6% 866 NO OF YEARS = 25 867 868 PV = PMT*(1/r)*(1-(1/(1+r)^n))*(1+r) 869 14000000 = PMT*(1/0.06)*(1-(1/(1+0.06)^25))*(1+0.06) 870 14000000 = PMT*13.55035753 871 PMT =14000000 /13.55035753 872 ANSWER PMT = 1033183.07 873 874 CASE 4 PV = 14000000 875 RATE = 876 NO OF YEARS = 25 877 878 PV = PMT*(1/r)*(1-(1/(1+r)^n))*(1+r) 879 14000000 = PMT*(1/0.13)*(1-(1/(1+0.13)^20))*(1+0.13) 880 14000000 = PMT*8.282883026 881 PMT =14000000 /8.282883026 882 ANSWER PMT = 1690232.73 883 884 885 886 13% pv, fv, annuity CAP STRU VALUE PM, PMT loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPO NPER APR CPI ear FVA s2 pva