Present and future value tables of $1 at 3% are presented below:

-Shelley wants to cash in her winning lottery ticket. She can either receive eight $100,000 semiannual payments starting today, or she can receive a single-amount payment today based on a 6% annual interest rate. What is the single-amount payment she can receive today?
A) $853,020.
B) $801,969.
C) $744,090.
D) $1,293,794.

Question

Present and future value tables of $1 at 3% are presented below:

-Shelley wants to cash in her winning lottery ticket. She can either receive eight $100,000 semiannual payments starting today, or she can receive a single-amount payment today based on a 6% annual interest rate. What is the single-amount payment she can receive today?
A) $853,020. 
B) $801,969. 
C) $744,090. 
D) $1,293,794.

Quizplus · Accepted Answer

PVAD = $100,000 × 12.93794* = $1,293,794
*PVAD of $1: n = 16; i = 3%

Present and Future Value Tables of $1 at 3% Are