12. Present value of annuities

Your uncle has said that if you agree to finish college he will give you equal payments of $2,500 at the end of each year for the next seven years. If the annual interest rate stays constant at 8%, what is the value of these payments in todays dollars? Round your answer to the nearest whole dollar.

$16,270

$11,064

$13,016

$14,057

You found out that now you are going to receive payments of $5,500 for the next 16 years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at 14%. What is the present value of these payments? Round your answer to the nearest whole dollar.

$34,458

$31,426

$53,031

$39,282