7) Lucky Lou has just won the lottery and will receive an annual payment of $100,000 every year for the next 20 years. If the annual interest rate is 8%, what is the present value of the winnings? 8) Frostmore Company is considering investing in a contract that will pay back $50,000 annually at the end of each year for 20 years. What amount should Frostmore pay for this investment today if it earns an 8% return? 9) DMV leases a building for 20 years. The lease requires 20 annual payments of $12,000 each, with the first payment due at the end of the year. The interest rate in the lease is 10%. What is the present value of the cost of leasing the building (in other words, how much money could they put into a savings account today, earning 10% interest, so that they will have enough to make each payment as it becomes due)? 10) Kim Black plans to buy a truck for $24,000 in 3 years. If the market interest rate is 6%, how much money should Kim set aside today for her future purchase