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ub Fin Related to Checkpoint 6.2) (Present value of annuity payments) The state lottery's milion-dollar payout provides for $1.4 million to be paid in 25 installments of $56.000 per payment. The first $56.000 payment is made immediately, and the 24 remaining $56.000 payments occur at the end of each of the next 24 years 8 percent is the discount rate What is the present value of the stream of cash flow? If 16 percent is the discourt rate, what is the present value of the cash flows? arses a. 18 percent is the discount rate, the present value of the annuity due is 5 (Round to the nearest cont> b. If 16 percent as the discount rate, the present value of the annuity due is $(Round to the nearest cert) Home (Present value of an annuity due) Determine the present value of an annuity due of $2.000 per year for 25 years discounted back to the present at an annual rate of 13 percent What would be the present value of this annuity due if it were discounted at an annual rate of 18 percent? a. If the annual discount rate is 13 percent, the present value of the annuity due iss {Round to the nearest cent) b. It the annual discount rate is 18 percent, the present value of the annuity due is $(Round to the nearest cont) (Annuity number of periods) Alex Karev has taken out a $210,000 foon with an annual rate of 9 percent compounded monthly to pay off hospital bills from his wife Izzy's aness 11 the most Alex can afford to pay is $2.500 per month, how long will it take to pay of the loan? How long will it take for him to pay off the loan if he can pay $3,000 per month? Use five decimal places for the monthly percentage rate in your calculations a. If Alex can pay $2,500 per month, the number of years it takes for him to pay of the loan is years (Round to one decimal place) b. It Alex can pay $3,000 per month, the number of years it takes for him to pay off the loan is years. (Round to one decimal place) (Annuity interest rate) You've been offered a loan of $25,000, which you will have to repay in 12 equal annual payments of $5,000 with the first payment due one year from now What interest rate would you pay on that loan? The interest rate you would pay on the loan is % (Round to two decimal places.)

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