1. You have just won the Georgia Lottery with a jackpot of $47,000,000. Your winnings will be paid to you in 26 equal annual installments with the first payment made immediately. If you had the money now, you could invest it in an account with a quoted annual interest rate of 13% with monthly compounding of interest. What is the present value of the stream of payments you will receive?

	$15,058,049.77
	$12,642,067.86
	$14,387,083.86
	$13,325,707.76
	$17,196,292.84

2. You plan to retire 33 years from now. You expect that you will live 29 years after retiring. You want to have enough money upon reaching retirement age to withdraw $150,000 from the account at the beginning of each year you expect to live, and yet still have $2,300,000 left in the account at the time of your expected death (62 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 33 years. You expect that you will be able to earn 11% per year on your deposits. However, you only expect to earn 6% per year on your investment after you retire since you will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your retirement goal?

	$8,453.53
	$9,383.42
	$7,842.81
	$7,065.60
	$10,597.07

3. The present value of an annuity due will:

	be less than the present value of an ordinary annuity (assuming all else equal).
	be equal to the present value of an ordinary annuity (assuming all else equal).
	exceed the present value of an ordinary annuity (assuming all else equal).