Hello!
If possible can you please teach me in excel formulas?
You have recently won the super...
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Advance Math
Hello!
If possible can you please teach me in excel formulas?
You have recently won the super jackpot in the Washington StateLottery. On reading the fine print, you discover that you have thefollowing two options:
 Â
a.
You will receive 30 annual payments of $270,000, with the firstpayment being delivered today. The income will be taxed at a rateof 30 percent. Taxes will be withheld when the checks areissued.
b.
You will receive $550,000 now, and you will not have to paytaxes on this amount. In addition, beginning one year from today,you will receive $220,000 each year for 29 years. The cash flowsfrom this annuity will be taxed at 30 percent.
Using a discount rate of 6 percent, what is the present value ofyour winnings for each option?
Thank you!
Autumn
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Computation of present value of annuity factor The formula for present value of annuity factor 1 PVF R where PVF 1 1i n and R Discount rate in PVF is calculated
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