14.16. Often lottery winnings are divided into equal payments given annually for 20...
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14.16.
Often lottery winnings are divided into equal payments given annually for 20 25 years. So the present value of the winnings is worth less than the actual jackpot, depending on the rate at which money could be invested. Find the present value in dollars using the given conditions. Complete the table for each amount, interest rate, and number of payments. Jackpot Amount $3,000,000 $3,000,000 Interest Rate 8% Equal Annual Payments Present Value (in dollars) 20 $ 14% 20 $ $3,000,000 8% 25 $ $3,000,000 14% 25 $ (Round to the nearest dollar as needed.) Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. 1 $52,000; money earns 6.9% compounded quarterly for 3 years 2 r3 Each payment is $ 897 (Round up to the nearest cent.)
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