What is the present value of your winnings

Reference no: EM131956105

Question: The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at the rate of $55,000 a year for the next 19 years.

With a discount rate of 12 percent, what is the present value of your winnings? Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131956105

Questions Cloud

How parties to a commercial contract can avoid : Discuss how parties to a commercial contract can avoid the possibility that a court will interpret the contract terms in accordance with trade usage.

What is their new rotation rate in revolutions per second : They then pull themselves toward each other so that the separation of their centers of mass is only 0.5 meters. What is their new rotation rate in revolutions

Calculate the outstanding balance of the loan : A client is evaluating the terms for a 30-year loan for $300,000 that would enable him to purchase a new home. The bank is quoting a 4.8 percent interest rate.

What are the three types of carbohydrates : What are the three types of carbohydrates? How is each used in the body?

What is the present value of your winnings : With a discount rate of 12 percent, what is the present value of your winnings? Use Appendix D for an approximate answer, but calculate your final answer.

What are areas in which bega cheese conducts its operations : What are the areas in which Bega Cheese conducts its operations? Which particular laws/regulations affect its operations? You need to list SIX laws/regulations.

Determining the age of the universe : Is this time an underestimate, an overestimate, or neither for the age of the universe?

What is the npv of agreeing to write the book : Clinton reportedly was paid an advance of $10.0 million to write his book My Life. Suppose the book took three years to write. In the time he spent writing.

What should be the balance of the fair value adjustment : Parrish Industries has bonds outstanding in the amount of $6,000,000. What should be the balance of the Fair Value Adjustment on Bonds Payable?

User Account

All Pages