KoQuestion 5 (of 5) value: 10.00 points The Caldwell Herald newspaper reported t
ID: 2392994 • Letter: K
Question
KoQuestion 5 (of 5) value: 10.00 points The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby has won the week's grand prize totaling $1.04 million. The State Lottery Commission has indicated that Mr. Ormsby will receive his prize in 20 annual installments of $52,000 each Use Excel or a financial calculator to solve. Round answers to the nearest dollar Required: 1. If Mr. Ormsby can invest money at a 11% rate of return, what is the present value of his winnings? Present ValueExplanation / Answer
Calculation Sheet of Pesent Value of Mr Ormbsby Winnings Year Instalment Amount($) Present Value Factor@11% Present value ( A ) ( B ) ( C ) ( D )=(BXC) 1 52000 0.900900901 46846.84685 2 52000 0.811622433 42204.36653 3 52000 0.731191381 38021.95183 4 52000 0.658730974 34254.01066 5 52000 0.593451328 30859.46906 6 52000 0.534640836 27801.32348 7 52000 0.481658411 25046.23737 8 52000 0.433926496 22564.17781 9 52000 0.390924771 20328.08811 10 52000 0.352184479 18313.5929 11 52000 0.317283314 16498.73234 12 52000 0.285840824 14863.72283 13 52000 0.257514256 13390.74129 14 52000 0.231994825 12063.73089 15 52000 0.209004347 10868.22603 16 52000 0.188292204 9791.194618 17 52000 0.169632616 8820.896052 18 52000 0.152822177 7946.7532 19 52000 0.137677637 7159.237117 20 52000 0.124033907 6449.763169 Total 1040000 Present Value 414093.0621 (Answer)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.