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Komok [63]
3 years ago
6

You have won the lottery. You will receive $2,420,000 today, and then receive 40 payments of $1,210,000 These payments will star

t one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $25 million. The appropriate discount rate is an APR of 9 percent compounded daily. Assume there are 12 months in a year, each with 30 days.
What is the present value of the cash flows from your lottery winnings?
Business
1 answer:
sp2606 [1]3 years ago
7 0

Answer:

The present value of the cash flows from your lottery winnings is $11,132,000.

Explanation:

Present Value of Lottery = $2,420,000

Annuity periods = 40

Present Value of annuity = P ( ( 1 - ( 1 + r / m )^-mt ) / r )

Present Value of annuity = 1,210,000 ( ( 1 - ( 1 + 0.09/2 )^-40 ) / 0.09 )

Present Value of annuity = 1,210,000  x 9.20

Present value of cash flow = $11,132,000

The present value of the cash flows from your lottery winnings is $11,132,000.

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Answer:

$503

Explanation:

The computation of the adjusted cash balance is shown below:

As we know that

Adjusted cash balance is = Cash ending balance - NSF Checks - Service charge

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Basically we applied the above formula

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Which one of the following regarding the State Disability Insurance (SDI) program is true?
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Explanation:

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