Dorothy Taylor has won a state lottery and will receive a payment of $93,000 every year, starting today, for the next 20 years. If she invests the proceeds at a rate of 5.76 percent, what is the present value of the cash flows that she will receive? (Round factor values to 4 decimal places, e. g. 1.5212 and final answer to nearest whole dollar, e. g. 5275.)

$30,342

Explanation:

Given the following ;

Cash flow per period = $93,000

Rate = 5.76%

Years = 20

Using the formula

pv = (C) ÷ (1 + r) ^n

Where,

pv = present value

C = cash flow at first period =$93,000

r = rate = 5.76% = 0.0576

n = period = 20years

pv = (93,000) ÷ (1 + 0.0576)^20

pv = 93000 ÷ (1.0576)^20

pv = 93000 ÷ 3.0650

pv = $30,342

the answerr would be 1

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%