Question

 ​(Present value of annuity​ payments)  The state​ lottery's million-dollar payout provides for ​$1.4 million to be paid in 20 installments of ​$70 comma 000 per payment. The first ​$70 comma 000 payment is made​ immediately, and the 19 remaining ​$70 comma 000 payments occur at the end of each of the next 19 years. If 11percent is the discount​ rate, what is the present value of this stream of cash​ flows? If 22 percent is the discount​ rate, what is the present value of the cash​ flows?a.  If 11 percent is the discount​ rate, the present value of the annuity due is $. If 22 percent is the discount rate, what is the present value of the cash flow?

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​(Round to the nearest​ cent.)

Answer 1

a)

b)

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