Wednesday
April 1, 2015

Homework Help: Finance

Posted by Connie on Tuesday, September 25, 2012 at 10:32am.

Sarah just won a $3,000,000.00 lottery. According to the lottery they will pay her a lump sum of $500,000.00 on October 1, 2012 and the balance in equal annual installments for 10 years.

Assuming that you are the director of the lottery, how much must you have in the account to pay Sarah her initial payment and the 10 remaining payments. Also assume that you have a discount rate of 6%

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

MBA Finance - Sally has won the grand prize in a lottery and must choose between...
mathematics - the theoretical probability of winning the lottery is 1/1,000,000,...
Accounting - Harding Company is in the process of purchasing several large ...
Personal Finance - 1. Joe won a lottery jackpot that will pay him $12,000 each ...
healthcare fiancare - HINT: 6% X $1,000,000 {20% X ($1,000,000 (6% X $1,000,...
Business - A. Joe won a lottery jackpot that will pay him $12,000 each year for ...
math! - Imagine that you are doing research for a term paper in your English ...
tax accounting - bruce wilson won 2 million in the state lottery. the lottery ...
Finance - A state's lottery winner is promised $200,000 a year for 3 years(...
ALGERBRA - Here are two ways of investing $30,000 for 20 years. Lump sum deposit...

Members