1.

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 annuitys appropriate interest rate (I) remains at 6.50% during this time, the annual annuity payment (PMT) will be ($1738.66) ($812.50) ($1015.63) ($1178.13).

2.

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 ($44086247.106) ($28369774.00) ($26638285.45) ($46951853.168)assuming annual interest rate of 6.50%. (Note: Round intermediate calculations to the nearest whole number.)