3. Bob has been in an accident and the other partys insurance company has offered either a one-time payout of $25,000, or a series of payments of $5,000 per year for 6 years. If Bob knows that the current investment rate of interest is 6%, what is the present value of the series of payments? (b) Which should Bob take based on present values?

PV = $24,586.62

FV = 0

I = 6%

N = 6

Pmt = -$5,000

THIS IS WHAT I GOT AND WHAT TO CHECK IF ITS RIGHT Answer: (a) $24,586.62 (b) Bob should take the one-time payout.