Question

You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the priz
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Present Value = Future Value/[(1+Interest rate)^Number of Periods]

= 3,000,000/[(1+0.06)^61]

= 3,000,000/34.96695

= $85795.3

Add a comment
Know the answer?
Add Answer to:
You have just received notification that you have won the $3 million first prize in the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • You have just received notification that you have won the $4 million first prize in the...

    You have just received notification that you have won the $4 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 71 years from now. What is the present value of your windfall if the appropriate discount rate is 7 percent? Multiple Choice $32,795.31 $32,139.41 $33,451.22 $93,559.35 $30,171.69

  • You have just received notification that you have won the $2 million first prize in the...

    You have just received notification that you have won the $2 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. points What is the present value of your windfall if the appropriate discount rate is BA percent? (Do not found Intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) eBook Present value Print References

  • You have just received notification that you have won the $1 million first prize in the...

    You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 71 years from now.    What is the present value of your windfall if the appropriate discount rate is 9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)   

  • You have just received notification that you have won the $2 million first prize in the...

    You have just received notification that you have won the $2 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 67 years from now.    What is the present value of your windfall if the appropriate discount rate is 9 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  • You have just received notification that you have won the $2.03 million first prize in the...

    You have just received notification that you have won the $2.03 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 77 years from now.    What is the present value of your windfall if the appropriate discount rate is 9 percent? (Enter your answer in dollars, not millions, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)    Present...

  • You have just received notification that you have won the $2.12 million first prize in the...

    You have just received notification that you have won the $2.12 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 68 years from now.    What is the present value of your windfall if the appropriate discount rate is 9 percent? (Enter your answer in dollars, not millions, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)   

  • Problem 5.11 Calculating Present Values (LO2 You have just received notification that you have won the...

    Problem 5.11 Calculating Present Values (LO2 You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 71 years from now. What is the present value of your windfall if the appropriate discount rate is 9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

  • You have just received notification that you have won the $1.25 million first prize in the...

    You have just received notification that you have won the $1.25 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 79 years from now. The appropriate discount rate is 6.4 percent. What is the present value of your winnings?

  • You just received notification that you have won the 1.25 million first prize in the centennial...

    You just received notification that you have won the 1.25 million first prize in the centennial lottery. However, the prize will be awarded on your 100th birthday, 79 years from now. The appropriate discount rate is 6.4 percent. What is the present value of your winnings

  • Solve using excel commands/formula A1 You have just received notification that you have won the $1...

    Solve using excel commands/formula A1 You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 9 percent? 1,000,000 80 Future value Years Interest rate 9% 10 Complete the following analysis. Do not hard code values in your answers. Your...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT