Greetiings. Can I get some help with this question please. I would like the it d
ID: 2493341 • Letter: G
Question
Greetiings. Can I get some help with this question please. I would like the it done in excel to see the formulas used.
The state of Florida sold a total of $36.1 million worth of lottery tickets at $1 each during the first week of January 2007. As prize money, a total of $41 million will be distributed over the next 21 years ($1,952,381 at the beginning of each year). The distribution of the first-year prize money occurs now, and the remaining lottery proceeds are put into the state’s educational reserve funds, which earn interest at the rate of 6% compounded annually. After the last prize distribution has been made (at the beginning of year 21), how much will be left over the reserve account?
Explanation / Answer
Year balance at the next yearamount of lottery collected interest earned balance payment of installment balance left after payment 0 36100000 0 36100000 1952381 34147619 1 34147619 2048857.14 36196476 1952381 38148857 2 38148857.14 2288931.43 35859926 1952381 37812307 3 37812306.71 2268738.4 35543568 1952381 37495949 4 37495949.31 2249756.96 35246192 1952381 37198573 5 37198573.35 2231914.4 34966659 1952381 36919040 6 36919039.95 2215142.4 34703898 1952381 36656279 7 36656278.55 2199376.71 34456902 1952381 36409283 8 36409282.84 2184556.97 34224726 1952381 36177107 9 36177106.87 2170626.41 34006480 1952381 35958861 10 35958861.46 2157531.69 33801330 1952381 35753711 11 35753710.77 2145222.65 33608488 1952381 35560869 12 35560869.12 2133652.15 33427217 1952381 35379598 13 35379597.98 2122775.88 33256822 1952381 35209203 14 35209203.1 2112552.19 33096651 1952381 35049032 15 35049031.91 2102941.91 32946090 1952381 34898471 16 34898471 2093908.26 32804563 1952381 34756944 17 34756943.74 2085416.62 32671527 1952381 34623908 18 34623908.11 2077434.49 32546474 1952381 34498855 19 34498854.63 2069931.28 32428923 1952381 34381304 20 34381304.35 2062878.26 32318426 1952381 34270807 amount left in reserve 43022146.2 41000001 2022145
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