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

13,000,000 | 8 | 20 |

13,000,000 | 15 | 20 |

13,000,000 | 8 | 25 |

13,000,000 | 15 | 25 |

Answer #1

find the cash value of the lottery jackpots give below. Yearly
jackpot payments begin immediately. Assume the lottery can invest
at the given interest rates .
JackpotAmount
InterestRate
Equal AnnualPayments
Present Value(in dollars)
$7,000,000
7%
20
$
$7,000,000
13%
20
$
$7,000,000
7%
25
$
$7,000,000
13%
25

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