Sunday, December 30, 2018

Finance Chapter 4 Question 40


You have just won the lottery...

Excel File

Chapter 4
40 Calculating Present Values
You have just won the lottery. 
PMT 1000000
PMT growth 165000
i 0.075
nper 10
Payment PV
0 1000000 $1,000,000.00 =D13
1 1165000 $1,083,720.93 =PV($D$9,C14,,-D14)
2 1330000 $1,150,892.37 =PV($D$9,C15,,-D15)
3 1495000 $1,203,416.05 =PV($D$9,C16,,-D16)
4 1660000 $1,243,008.88 =PV($D$9,C17,,-D17)
5 1825000 $1,271,219.50 =PV($D$9,C18,,-D18)
6 1990000 $1,289,443.42 =PV($D$9,C19,,-D19)
7 2155000 $1,298,936.81 =PV($D$9,C20,,-D20)
8 2320000 $1,300,829.18 =PV($D$9,C21,,-D21)
9 2485000 $1,296,134.93 =PV($D$9,C22,,-D22)
10 2650000 $1,285,763.91 =PV($D$9,C23,,-D23)
Sum $13,423,365.99 =SUM(E13:E23)

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