What is the future value of your total lottery payments

Reference no: EM13283930

On the way to Shop and Save, you buy a lottery ticket and win $100,000. The catch is that the money will be paid to you in two installments: $50,000 today, and $50,000 at the end of 5 years from now.

A) Assuming an interest rate of 8%, what is the present value of your total lottery payments?

B) Suppose that you invest the $50,000 winnings that you receive today and earn 8% annually for the next 5 years. What is the future value of your total lottery payments?

Reference no: EM13283930

Questions Cloud

Explain what are the spectator ions for the reaction : Write the balanced net ionic equation for the reaction that occur in the following case. Fe(NO3)2(aq)+KOH(aq) Express your answer as a balanced net ionic equation. Identify all of the phases in your answer. then seperatly what are the spectator io..

What is the most fred should be willing to pay : What is the most Fred should be willing to pay for a share of Denhart if he can earn 10% on investments of similar risk?

What is its average speed up to that moment : An arrow is launched vertically upward from a crossbow at 97.9 m/s. What is its average speed up to that moment

Construct block diagram and asmd chart for digital system : Construct a block diagram and an ASMD chart for digital system that counts the number of people in a room. The one door through whichpeople enter the room has photocell that changes a signal x from 1to 0 when the light is interrupted.

What is the future value of your total lottery payments : Suppose that you invest the $50,000 winnings that you receive today and earn 8% annually for the next 5 years. What is the future value of your total lottery payments?

Determine the net downward force on the tanks flat bottom : You are assigned the design of a cylindrical, pressurized water tank for a future colony on Mars, Find the net downward force on the tank's flat bottom

What should be the amount of baruch annual contributions : What should be the amount of Baruch's annual contributions? Show all steps in your work.

Determine the equivalent requirements of the digital filter : It is required to design an equivalent analog filter using a digital filter and other appropriate components. Thesampling frequency is fsamp= 20 kHz and the attenuation (α)specifications of the filter are as follows: α > 42 dB for 0 4000 Hz.

Write a g-code to move the laser beam axis to x : A MEMS device has a pin that is to be drilled through the center. A camera is used to position a laser beam for this purpose. The center of the beam is to be retrieved using a threshold in gfilter on an intensity map.

User Account

All Pages