A lottery winner will receive $5 million at the end of each of the next fourteen years. What is the future value (FV) of her wi
nnings at the time of her final payment, given that the interest rate is 8.2% per year?
1 answer:
Answer:
$122,821,129.69
Explanation:
For computing the future value we need to apply the future value formula i.e to be shown in the attachment below:
Provided that,
Present value = $0
Rate of interest = 8.2%
NPER = 14 years
PMT = $5,000,000
The formula is shown below:
= -FV(Rate;NPER;PMT;PV;type)
So, after applying the above formula, the future value is $122,821,129.69
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Answer
The answer and procedures of the exercise are attached in the attached archives.
Explanation
Please consider the information provided by you in the exercise. If you have any question please write me back. Please take a look to the image attached.
Answer:
$38,400
Explanation:
<em>1. Cash Purchases:</em>
The total purchases in the month of March is of $35,000.
It is given that 70% of Purchases are for cash.
Hence, 70% of $35,000 would be;
$39,000 x 0.70
$27,300
<em>2. Credit Purchases: </em>
Remaining Balance of Purchases from the month of February:
For the month of February Cash Purchases can be calculated as follows;
$37,000 x 0.70
$25,900
Remaining Balance to be paid in March for the month of February can be calculated as follows;
$37,000 - $25,900
$11,100
<em>3. CASH PAYMENT for PURCHASES in MARCH:</em>
Cash Purchases = $27,300
Credit Purchases = $11,100
Hence;
<em>Cash Payment for purchases in March = Cash Purchases + Credit Purchases </em>
Cash Payment for purchases in March = $27,300 + $11,100
Cash Payment for purchases in March = $38,400
