An ordinary annuity selling at $4,947.11 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity’s appropriate interest rate (IN) remains at 6.50% during this time, the annual annuity payment (PMT) will be . You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won assuming annual interest rate of 6.50%.

$812.49 and $28,369,687.5

Explanation:

Let us assume the annual payments be X

Sale of ordinary annuity = X × PVAF factor

$4,947.11 = X  × PVAF(6.5%, 8 years)

$4,947.11 = 6.0888 × X

X = $812.49

And,

The Present value is

Present value = Annual payments + Annual payments × PVAF factor

= $4,375,000 + $4,375,000 × PVAF(6.5%, 7 years)

= $4,375,000 + $4,375,000 × 5.4845

= $28,369,687.5

The $4,375,000 is come from

= $35,000,000 ÷ 8 years

= $4,375,000

Refer to the PVAF factor table

We simply applied the above formulas

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )